FOLLOWING the start of oil production offshore Guyana, several measures have been implemented in the burgeoning oil and gas sector to ensure the nation benefits from production and that stringent regulatory practices are in place.
In keeping with these developments, the Government of Guyana is expected to pass an oil spill legislation titled the ‘National Oil Incident, Emergency Response, and Financial Responsibility Bill’. This landmark Bill is expected to protect Guyana from any liabilities emanating from an oil spill and to outline the preparation, planning, and response to oil spills, should they occur.

Guyana currently produces over 600,000 barrels of oil per day and is on par to produce over 1.3 million barrels per day by 2027. The oil and gas industry has accomplished this safely and put in place several important safety protocols concerning its operations. However, there can never be enough focus on safety and spill prevention.
While the Bill is still in the initial stage, Vice President Dr. Bharrat Jagdeo has noted, on several occasions, that it will not just target oil and gas producers, but also shipping companies. In a nutshell, the Bill will significantly strengthen the Government of Guyana’s capacity to ensure full liability coverage with measures in place for oil spill mitigation planning and response.

The government had aimed to pass the legislation before the National Assembly went into recess. This stance has since changed, with the Vice President publicly stating that while the government knows the significance of the Bill, they will not “rush” to have it passed. The government instead, will give ample time to stakeholders for feedback so that a comprehensive piece of legislation can be formulated.
It is important to note that the list of stakeholders does not include any of the oil companies operating in Guyana according to the Vice President. Rather, it will be the people of Guyana, who would be affected in the unlikely event there is an oil spill. Ensuring that oil and gas producing companies do not influence the crafting of the Bill is crucial in ensuring the credibility of the legislation and that the Bill is crafted with the country and people being the priority, the government has said.

As mentioned, since Guyana became an oil-producing nation, there is a conscious effort by both the government and the oil and gas companies to ensure oil production is done safely. The introduction of a Bill that deals specifically with oil spills is another step in the right direction, bolstering the country’s oil and gas regulatory framework.
Only last year, the government passed the Petroleum Activities Bill which repealed and replaced the Petroleum Exploration and Production Act of 1986.

The Petroleum Activities Bill presented major improvements and security, encompassing safety, emergency response, cross-border unitisation, supervision, and monitoring requirements.
The National Oil Incident, Emergency Response, and Financial Responsibility Bill, when passed coupled with the Petroleum Activities Bill, will be two progressive pieces of legislation in the oil and gas industry. Moreover, the legislations are crafted to ensure that the interest of Guyana and its people are, and remain, a priority.