The Ministry of Natural Resources (MNR) has confirmed that audits of ExxonMobil’s cost recovery claims for the Stabroek Block are ongoing and being handled according to official procedures. In fact, the government said in a statement today that Exxon was informed of a US$214.4 million adjustment from an audit covering 1999 to 2017, and the process for resolving any disputes is now moving forward.
The Guyana Revenue Authority (GRA) had approved the audit firm IHS Markit’s (IHS) recommendation to adjust Exxon’s cost bank. Exxon was notified of this on September 25, 2024, and later requested an extension until May 15, 2025 to respond.
However, GRA only granted an extension until January 25, 2025. Now that this deadline has passed, the MNR has directed the GRA to proceed with the next steps in the dispute resolution process under the 2016 Stabroek Block Petroleum Agreement. For the 2018 to 2020 audit, conducted by VHE Consulting, Exxon has responded to the findings, and VHE is currently reviewing the company’s submission. The ministry says this process is ongoing.
The MNR also warned that discussing audit details before they are finalized could lead to misinformation. It reiterated that all reports will be made public once the audits are complete.
The ministry says these updates should clarify concerns raised in a recent Stabroek News article questioning the status of the audits and the government’s handling of Exxon’s cost recovery claims.
