Opposition MPs reject Jagdeo’s claim that ExxonMobil never told Patterson of “agreed” reduction in audit cost

Last Updated on Thursday, 12 October 2023, 19:36 by Denis Chabrol

Opposition parliamentarian David Patterson and two other colleagues Thursday night rubbished earlier claims by Vice President Bharrat Jagdeo that ExxonMobil officials denied that they ever told a meeting with A Partnership for National Unity+Alliance For Change (APNU+AFC) parliamentarians that the company had agreed to reduce disputed audited costs from US$214 million US$3 million.

Mr Jagdeo related that after learning of the reported reduction, during a Cabinet meeting, President Irfaan Ali called ExxonMobil whose official denied informing a meeting with APNU+AFC that agreement was reached to reduce the audited cost.

Reacting to Mr Jagdeo’s claim, Mr Patterson recalled asking the question in the open meeting of eight persons including five from the APNU+AFC. Mr Patterson said the President of ExxonMobil Alistair Routledge was the company official who explicitly stated that government and the company had reached an accord to slash the figure that was stated in the IHT Markit survey. “Routledge’s words were that they agreed to (US$) 3M because it was time-consuming to continue looking through the dozens of boxes to reduce it further, however Exxon has all their records,” Mr Patterson told Demerara Waves Online News.

Mr Elson Low, the Finance Advisor to Opposition Leader, and parliamentarian Shurwayne Holder also insisted that ExxonMobil explicitly stated that the company and government agreed to the cut.

“What was conveyed was that the government had agreed, because of the consistent back and forth, that the 3 million would be the total that they would end on,” Mr Low said, adding that the company did not recant its position in a statement on the final audit figure. He said the opposition wanted to clarify the claim by the auditor that it was not getting information from the company. In that regard, he recalled company representatives saying that they had been providing information, but the process had been lengthy.

In response specifically to Mr Jagdeo, Mr Low said he was not surprised that the Vice President was “trying to cover himself” after several months ago threatening to “come down on Exxon like a ton of bricks” if no information had been provided.

Mr Holder said APNU+AFC asked about the US$214 million and Mr Routledge, after pointing out that the company had all of its records but it was tedious and time-consuming, said that the figure was reduced to US$3 million. He doubted that ExxonMobil had given a different account of the meeting. “Routledge was very clear what Exxon said to all of us. There were five of us there…We all heard and participated in that discussion and that is exactly what they told us,” said Mr Holder who is also Chairman of the People’s National Congress Reform. “I do not believe that Exxon would say to Irfaan Ali or to Jagdeo that they didn’t say they didn’t have an agreement with the government. They did, they did. I’m very much sure without a shadow of a doubt,” he added.

Vice President Jagdeo earlier Thursday said government, through the Guyana Revenue Authority (GRA), was sticking to the disputed costs of US$213 million in the US$1.67 billion spent on exploration and exploitation in the Stabroek Block.

Last week, Minister of Natural Resources Vickram Bharrat blamed Senior Petroleum Coordinator Gopnauth ‘Bobby’ Gossai for engaging ExxonMobil on the audit costs though government’s position is that the GRA would be dealing with the matter. Mr Bharrat had said that the Permanent Secretary was asked to take disciplinary action against Mr Gossai.

Mr Jagdeo on Thursday referred questions about Mr Gossai’s fate to the Ministry of Natural Resources and promised that he would ask that that officials there speak to the media.