Lawmakers in Guyana enact legislation holding corporations accountable for damages caused by oil spills

In Guyana, late Friday night, the government passed a bill that makes people responsible for damage caused by oil spills, even those that happen on ships.

Before long, President Irfaan Ali will have signed the bill into law, since it passed with a majority of votes cast by voice vote.

An Exxon Mobil-led (XOM.N) opens new tab consortium controls oil production in Guyana. This year, production is projected to go over 900,000 barrels per day (bpd). As its energy business grows, the South American country is trying to tighten oversight. All of its oil and gas comes from offshore fields.

Laws say that people who are legally responsible must agree to pay for any spills, do regular checks and balances, and fix any problems that are found.

Companies that don’t follow the rules will be punished, and those that can’t provide the needed financial assurance will have their licenses to explore and produce oil taken away.

An Exxon Mobil-led (XOM.N) opens new tab consortium controls oil production in Guyana. This year, production is projected to go over 900,000 barrels per day (bpd).

Following Brazil, Mexico, Venezuela, and Colombia, the country became Latin America’s fifth biggest oil producer last year. About 631,000 barrels of oil per day (bpd) were produced by the Exxon group in the first quarter, which is 3% more than the same time last year. The group includes U.S. Hess (HES.N) and China’s CNOOC (600938.SS).