Cabinet discusses probe report on unauthorised negotiations with ExxonMobil to reduce expenses

Last Updated on Thursday, 5 October 2023, 21:14 by Denis Chabrol

ExxonMobil’s Guyana office, Duke Street, Kingston, Georgetown.

Cabinet on Thursday discussed a report on an investigation into how officials if Ministry of Natural Resources had negotiated the reduction US$214 million in expenses with ExxonMobil down to US$3 million, Vice President Bharat Jagdeo said.

“We’re taking it serious,” he said.

He said the outcome of Cabinet’s consideration of the report that was presented by Minister of Natural Resources, Vickram Bharrat would most likely be made known by President Irfaan Ali.

Mr Jagdeo told a news conference, in his capacity as General Secretary of the People’s Progressive Party, that when he left Cabinet the matter was being discussed and he would rejoin those deliberations if they were continuing. “The report was being discussed when I left the Cabinet. If the discussions are ongoing, I will go back for those discussions now,” he said.

Government has already stated no money was stolen, but the probe was aimed at finding out who engaged ExxonMobil. The administration had said that the Guyana Revenue Authority (GRA) is the only authorised agency to handle the audit matters. Mr Jagdeo had already promised to release the names of the technical officials who met with ExxonMobil after the investigation has been completed.

An audit by IHS Market questioned the validity of US$214 million of the US$1.67 billion spent on exploration and exploitation in the Stabroek Block. Based on the 50/50 split of cost of oil between government and ExxonMobil and its co-venturers, if Guyana gets its way in arbitration it will be credited US$107 million.