Petroleum Act, 2016 (No. 2 of 2016).

This Act provides with respect to exploration and production of petroleum resources on land or in any submarine area of The Bahamas and other petroleum operations. It also concerns related matters such as the protection of the environment. The Minister responsible for petroleum shall be the principal authority for purposes of this Act and shall have ample powers for purposes of administration of this Act. The Minister may enter into agreements or issue permits, licences or leases for petroleum operations ("instruments"). If a discovery extends over the maritime boundary of The Bahamas into the territory of another country the Minister shall be notified in writing within seven days and no further activity shall be carried out without the prior approval of the Minister. In such case, the Minister shall in consultation with the relevant authorities take such steps as considered fit.
The holder of an instrument shall be strictly liable for environmental damage and shall, at its own expense, adopt all practicable precautions to avoid such damage. The holder of an instrument shall obtain and maintain insurance or other acceptable financial security against liability and such security must be approved by the Minister. The Minister may execute works for the remediation of damage if the holder thereof fails to execute such works. Liability shall not exist where the holder if the instrument has undertaken all reasonable preventative measures to reduce and mitigate the environmental damage.