The second audit into ExxonMobil’s Stabroek Block’s 2018-2020 bills has exposed several non-recoverable expenses which Guyana’s oil is unjustly covering. This news agency was reliably informed that auditors have challenged $63 million in spending for Facebook/Instagram promotions, luxury trips for four government officials to Singapore’s Liza Destiny naming ceremony, and lavish staff parties.
Guyana Standard understands from sources close to the audit that Exxon is being asked to refund the $63 million to the cost bank, which would be shared equally between the company and the State.
Auditors made it pellucid that Exxon and its partners are only to recover expenses related to petroleum operations. According to the Stabroek Block Production Sharing Agreement (PSA), petroleum operations means: “Prospecting Operations and/or Production Operations, as defined in the Act conducted pursuant to this Agreement and which were conducted under the 1999 Petroleum Agreement with such previous operations being hereby deemed by the Minister to be carried out under this Agreement.”
In light of such a strict definition, auditors said, “Such a cost must be carried out for, or in connection with, production operations for the cost to be recoverable. These costs were therefore not directly for Stabroek production operations; they are corporate expenses that are not recoverable.”
The contract to audit ExxonMobil’s bills for 2018 to 2020 was awarded last May to Ramdihal & Haynes Inc., Eclisar Financial, and Vitality Accounting & Consultancy Inc. The local consortium was supported by international firms- SGS and Martindale Consultants. Guyana Standard understands that the audit report is in the process of being reviewed by the relevant authorities.
