Guyana disputes ExxonMobil’s almost US$300 million expenses

Last Updated on Thursday, 22 May 2025, 18:27 by Writer

Guyana government-contracted audits of expenses by ExxonMobil Guyana and its partners have triggered disputes in expenses now totalling US$279.1 million spanning two audits, the Natural Resources Ministry indicated in a statement Wednesday night.

The Ministry said ExxonMobil Guyana has until May 31 to agree to one of several nominees for a “sole expert” to resolve a dispute over US$214 million in costs submitted by the co-venturers.

This was communicated to ExxonMobil and its partners, and both Government and the co-venturers have agreed to activate the provision for a sole expert, as enshrined in the 2016 Production Sharing Agreement (PSA).

“The Government has submitted multiple nominees for the sole expert.

The sole expert is an established dispute resolution mechanism, which can resolve disagreements over the cost recovery claims.

ExxonMobil, acting on behalf of the co-venturers, has until May 31, 2025, to provide its response,” the Ministry said.

The Guyana Revenue Authority (GRA) had said US$1.6 billion in expenses from 1999 to 2017 was uncovered in an audit conducted by the London-based IHS Markit.

The overall disputed costs have now risen as a result of the second audit, which examined costs incurred between 2018 and 2020 and so reviewed US$7.2 billion in declared expenses.

The Natural Resources Ministry said that of that amount, US$65.1 million was not accepted by the Government.

“This was communicated to the co-venturers and they have since provided updated submissions, which are under review by the Government,” the Natural Resources Ministry added.

The requirements for expense audits and a “sole expert” are provided for in the PSA between government and ExxonMobil Guyana.

As previously reported, both of the final reports for the first and second audits are available on the website of the Petroleum Management Programme.

The third audit, covering the period 2021 to 2023, was completed and submitted to the Government.

The GRA, which plays a key role in the Government’s efforts on the three audits, is reviewing the initial report, government also said.

The Ministry of Natural Resources says it reaffirms its commitment to the prudent management of Guyana’s oil and gas sector and promises it will continue to keep the public informed of its work in this regard.