Vice President, Dr. Bharrat Jagdeo has addressed the recent controversy surrounding ExxonMobil and its audited costs, refuting opposition parliamentarian David Patterson’s claim that the government had reduced the costs from US$214 million to US$3 million. But even more interestingly, he has made it clear that Senior Petroleum Officer, Gopnauth “Bobby” Gossai who was found responsible for reducing the cost “is not one of us”, implying that he is merely a technical officer and his actions do not reflect the PPP government.
The audit of Exxon’s US$1.67B in expenses incurred from 1999 to 2017 in the Stabroek Block was done by British firm, IHS Markit which flagged some US$214M in questionable expenses.
The government, through the Guyana Revenue Authority (GRA), has been actively challenging the US$214 million in costs incurred by Esso Exploration and Production Guyana Limited (EEPGL) as part of their $1.67 billion expenditure on exploration and exploitation in the Stabroek Block.
The GRA, which functions as the government’s advisor on these audits and their findings, recommended to the ministry on August 8, 2023 for the audit to be closed with US$214M as the final figure for dispute. Despite this advice, Gossai, who heads the Ministry of Natural Resources’ Petroleum Unit engaged Exxon in an unauthorized reduction of the costs to US$3M.
Jagdeo emphasized that during a Cabinet meeting, President Irfaan Ali personally contacted ExxonMobil officials, who denied any agreement regarding the cost reduction. ExxonMobil asserted that they had submitted supporting documents to justify the reduction.
Prior to Minister of Natural Resources Vickram Bharrat briefing the Cabinet, President Ali met with Gossai, and the Commissioner General of the Guyana Revenue Authority, Godfrey Statia. Jagdeo stated that Mr. Gossai had sent documents to support Minister Bharrat’s 2022 letter. However, there was a discrepancy as Statia claimed he never received the supporting documents, despite multiple requests. This has led to opposition allegations of a plot to embezzle funds, with Gossai being made the scapegoat.
While it was previously noted by the government that it does not support Gossai’s actions, Jagdeo did not comment on whether disciplinary actions has yet been taken against Gossai. He instead suggested that inquiries should be directed to the ministry and emphasized that this is a “purely technical” matter of audits in which no minister is directly involved.
Nevertheless, the government has committed to establishing systems to prevent any such recurrence and staff members of the Ministry will be expected to make full disclosure with all contact and sharing of information with stakeholders in the sector.
