Guyana: AFC Calls for Enhanced Safeguards in Guyana’s Oil Sector

The Alliance For Change (AFC) has called for a freeze on approvals for upcoming offshore exploration and production licenses in Guyana until the regulatory framework is thoroughly revised. AFC Leader David Patterson made this statement during an economic briefing, responding to recent production applications submitted by ExxonMobil Guyana and its partners in the Stabroek Block.

Patterson emphasized that Guyana has gained significant operational experience over nearly a decade of continuous crude oil production, which should be leveraged to secure stronger environmental protections and fiscal benefits for the country. He stated, “We have to draw the line somewhere,” highlighting the need for a regulatory approach that reflects the current state of the industry rather than outdated frameworks.

The AFC clarified that it does not oppose foreign direct investment or the exploration of hydrocarbon resources but insists that the government must not rely on regulatory templates designed for a past era. Patterson pointed out that all operational risks are now well understood, and it is time for Guyana to reassess how it can maximize returns from its natural resources.

He identified four key policy areas that need to be addressed before any new production permits are granted. One major concern is the issue of environmental liabilities, where Patterson argued for the necessity of written parent-company guarantees from ExxonMobil. He stated that the focus should shift from fixed financial limits of insurance policies to securing explicit commitments from the corporation to cover cleanup costs in the event of an oil spill.

Patterson also criticized the Environmental Protection Agency (EPA) for its performance as a regulatory body, citing its litigation history and recent court rulings that have not favored public interest. He noted that the EPA has faced challenges in court regarding parent guarantees and has been criticized for not adequately addressing greenhouse gas emissions in environmental assessments.

The AFC plans to propose a series of legislative amendments aimed at enhancing corporate liability and strengthening local regulatory powers when Parliament reconvenes, as the country prepares for further developments in its oil sector.

Source: hgptv.com

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