Vice President, Dr. Bharrat Jagdeo, has assured that nothing is standing in the way of Guyana’s ability to audit ExxonMobil Corporation’s expenses in the Stabroek Block. Despite the two-year deadline for audits prescribed by the 2016 Production Sharing Agreement (PSA), Jagdeo stated that there is a clear understanding between the government and the ExxonMobil-led consortium that they must provide their books upon request for an audit.
During a press conference yesterday, the Vice President stated, “We made it clear that once we got in office that Exxon and its coventurers could never use the timeline in the agreement as an excuse…If they use that and refuse to comply with the audit, then they will have a ton of bricks falling on their heads on other regulatory issues.”
Therefore, the two-year stipulation does not carry any consequences, as noted by the International Monetary Fund and APNU’s Economic Advisor, Elson Low. Both parties have emphasized the need for timely audits; otherwise, Guyana would have to accept Exxon’s costs as they are.
Guyanese authorities are currently finalizing the findings of an audit on the US$1.6B spent by Exxon and its partners from 1999 to 2017 in the Stabroek Block. This news agency understands that the audit, which began in 2019, has found that Exxon and its partners are unable to justify over US$200M in expenses. Auditors representing Guyana informed this news agency that the oil companies will have a fair opportunity to provide relevant documentation. In the meantime, advice is being sought on how to address any disputed costs that may arise.
A second audit covering US$7.3B in expenses from 2018 to 2020 is also being finalized.
