Vice President Dr. Bharrat Jagdeo revealed today that Cabinet is scrutinizing the findings of a report on the Ministry of Natural Resources’ improper handling of ExxonMobil Guyana Limited’s audit.
This document followed a thorough investigation that was initiated following an “unauthorized” series of engagements between ExxonMobil and the ministry’s Petroleum Unit to reduce Exxon’s flagged US$214 million in dubious expenses to US$3 million.
Initially identified by UK firm, IHS Markit in 2019, these expenses, amounting to US$1.7 billion, were incurred by Exxon and its associates between 1999 and 2017 in the Stabroek Block, offshore Guyana.
As the government’s official consultant for oil expense audits, the Guyana Revenue Authority (GRA) had initially approved the flagged US$214 million without objections and advised the ministry to conclude the audit on August 8, 2023. However, the Petroleum Unit acted contrary to GRA’s counsel, engaging with Exxon to diminish the questionable expenses to US$3 million.
This unexpected development prompted various stakeholders to demand an urgent investigation, which was subsequently ordered by President Dr. Irfaan Ali.
Dr. Jagdeo stated today that the investigative report has been delivered to the Cabinet, and the review of its findings commenced. He noted during his press briefing, “Discussions regarding the report were underway when I departed from the Cabinet meeting. These discussions will continue upon and once concluded, the president will provide an address on the matter. We are approaching this issue with the seriousness it warrants.”
Following the resolution of this ongoing debacle, it is anticipated that Guyana will officially inform Exxon of the audit’s closure at the initially flagged amount of US$214 million. Subsequently, both parties are expected to engage in arbitration to settle the disputed amounts.
