New oil spill legislation allows for more companies to be held responsible – GS Jagdeo

Guyana’s newest piece of legislation will ensure a wider scope of companies that can be held liable in the unfortunate event of an oil spill.

This was made clear by General Secretary of the People’s Progressive Party (PPP) and Vice President Dr Bharrat Jagdeo during his weekly press conference on Thursday.

The new bill, officially titled the Oil Pollution Prevention, Preparedness, Response and Responsibility Bill 2025, enhances national preparedness and ensures that any responsible party is held accountable.

It identifies the Civil Defence Commission as the “competent national authority” to address matters emanating from an oil spill and holds the responsibility for establishing an Incident Command System, organising drill exercises, and publishing a National Oil Spill Contingency Plan.

Dr Jagdeo said that these new provisions ensure that no one can escape their responsibility of cleaning up an oil spill.

“In the past, we could have only gone after the oil companies. Now, we have expanded this to vessels transporting fuel through our territory. So, if you have a spill caused by an oil rig…or if you have a spill caused by a vessel, then they too would be liable,” he noted.

Not only would a company be responsible for the cleaning up of an oil spill, but that company would also have to consider compensating for damages to several other areas, including:

• Damage to real or personal property and economic losses resulting therefrom
• Loss of taxes, royalties, rents, fees and profit shares
• Loss or damage caused by preventative measures
• Damage related to impairment of the environment

Further, Dr Jagdeo poured cold water on the opposition’s argument that Section 21 of the bill disallows the government from receiving compensation from the already established parent guarantee.

He said that the section of the bill ensures that companies cannot sign away their responsibility to another company if they, in fact, are culpable of causing an oil spill.

“So, if you’re the party responsible for the spill, you can’t go and sign an agreement…and transfer that liability. You are responsible for it…it has nothing, absolutely nothing to do with the parent guarantee,” he noted.

He said that the Ministries of Legal Affairs and Natural Resources are tasked with ensuring the public is more properly educated about the different aspects of the bill.

The bill was passed in the National Assembly on Friday last and is expected to be assented to by the president soon.

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 an oil spill.

Prime Minister Brigadier Mark Phillips had 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 a 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 as not to face the same reality.

“I should note that while we have drawn lessons ffrom global best practices, it is important to recognise 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, Hon. Mohabir Anil Nandlall, SC, MP had said 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.

This forward-looking bill aligns with Guyana’s low-carbon development strategy, the AG added.

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.

The passage of this bill forms part of the government’s commitment to ensure a modernised petroleum sector for the benefit of all Guyanese.