Oil Pollution Bill passed in National Assembly

Championing the newest piece of legislation regulating the operations of oil extraction, Prime Minister Brigadier (Ret’d) Mark Phillips, declared that the new oil pollution Bill is necessary for the protection of Guyana’s economy.

The Bill, which has the formal name Oil Pollution Prevention, Preparedness, Response and Responsibility Bill 2025, greatly enhances national preparedness and ensures that responsible parties are held accountable in the unfortunate event of events such as petroleum-related spills and spillage of other pollutants.

The Bill was debated and passed in the legislation on Friday.

“The presentation of this Bill during this critical period in our economic history is vital in safeguarding our ecosystem from the effects of oil spill,” the Prime Minister pointed out.

He said that the creation of this piece of legislation is in keeping with international best practices to ensure that Guyana’s waters are protected.

“Guyana, standing at the threshold as a major oil-producing nation, must take pattern from these models by establishing a clear authority for oversight, aligning with best global practices, and ensuring all operators bear full responsibility for environmental protection,” he explained.

Recognising that many countries have faced significant challenges with containing oil spills, Prime Minister Phillips committed his administration’s efforts to boosting the state’s resources so not to face the same reality.

“I should note that while we have drawn lessons ffrom global best practices, it is important to recognize that even these countries…have faced challenges in enforcement and real-time response…with the passage of this Bill, Guyana is committed to building the necessary institutional capacity,” the prime minister, who also has the responsibility for disaster preparedness, pointed out.

Attorney General and Minister of Legal Affairs Mohabir Anil Nandlall, SC, also backed the Bill.

He noted that the Bill provides a rigid network of statutory frameworks that not only places a strong emphasis on local content and environmental protection, but also ensures that everyone in the sector operates safely and responsibly.

“…In respect of disasters which we have already settled. The absence of a disaster preparedness apparatus, a legal standard by which operators have developed, inadequate insurance against some disasters, and a mechanism of compensation in the event of a disaster. I am pleased to announce that these very valid and crucial concerns are addressed in this Bill,” he pointed out.

The legislation sets out a comprehensive national legal framework for oil spill prevention, preparedness, response, and compensation. It designates the Civil Defence Commission (CDC) as the national authority responsible for coordinating response efforts and mitigating the impact of any spill.

A formalised National Oil Spill Committee within the CDC will oversee the development of an Incident Command System and lead regular training and drill exercises to ensure readiness.

Gov’t to table landmark ‘Oil Spill’ Bill in National Assembly next Monday

Before it was passed in the House, the Bill was fiercely criticised by Opposition Parliamentarians.

Opposition Parliamentarians Shurwayne Holder and David Patterson drew attention to a ruling made by Justice Sandil Kissoon.

In a landmark ruling in 2023, High Court Judge Sandil Kissoon ordered Guyana’s Environmental Protection Agency (EPA) to issue an Enforcement Notice directing ExxonMobil’s Guyana subsidiary to provide an unlimited liability parent guarantee for its operations in the Stabroek Block within 30 days. That guarantee is meant to protect Guyana from the costs of dealing with an oil spill.

The ruling has, however, been appealed. The matter is before the Caribbean Court of Justice.

“They brought a Bill which they claim will ensure Guyana receives full liability coverage, essentially nullifying or superseding Justice Kissoon’s ruling,” Holder argued, however.

Patterson, similarly, said the government seemed to be introducing legislation that was neutralising the impact of Justice Kissoon’s ruling.

Natural Resources Minister Vickram Bharrat addressed some of these statements.

The Bill, he says, ensures that companies are held accountable.

“Here we are, debating a Bill that is taking us forward, yet the honorable members [of the opposition] is stuck in the past…we have a Bill here that will ensure that the responsible party is mandated to ensure that they prevent, that they prepare, that they restore, [and]…that they ensure that we return to a state of normalcy,” Bharrat explained.

He also boasted about the management of the oil sector, saying that this new legislation only adds to all that has already been done to strengthen the regulations of the industry.

Minister Bharrat further reminded Parliamentarians that the government of Guyana has already procured the country’s first capping stack that can immediately be deployed in the event of an oil spill (Modified release from the Department of Public Information)