ExxonMobil’s nominee for US$214 million cost oil may be in conflict of interest

Last Updated on Tuesday, 9 June 2026, 21:33 by Writer

ExxonMobil Guyana Limited on Tuesday dodged questions about its nominee for sole expert to address a dispute over US$214 million in the cost oil audit from 1999 to 2017, even as it floated the likelihood of taking the matter to arbitration.

Demerara Waves Online News was reliably informed that ExxonMobil was insisting on one of its nominees to settle the seven-year dispute that surfaced in the 2019 audit that was completed by the United Kingdom firm, IHS Markit.

The report states that US$34.34 million of claims are considered ineligible and US$180 million has no documentation.

ExxonMobil Guyana Limited’s Vice President and Business Services Manager John Colling declined to say specifically whether one of the major sticking points in the negotiations had to do with a conflict of interest over his company’s nominee for the position.

“What I can tell you is that as sole experts are considered, they must meet a number of qualifications that are acceptable to both parties, and certainly objectivity is one of them. So, that is one of the criteria that we are discussing with the government, as well as experience, relevant experience, which is another key factor,” he told a news briefing.

Side-stepping several direct questions about picking the sole expert, he said ExxonMobil Guyana and government were working “very diligently” to identify a “mutually acceptable sole expert.”

Mr Colling, however, hinted that the issue could soon be referred to the France-based International Chamber of Commerce to pick the sole expert. 

“If we’re unable to arrive at a mutual selection, that can be referred to the ICC to make the selection, which very well may be the next step in the process,” he said.

Already, the Guyana Revenue Authority (GRA), the South American nation’s tax agency, has ruled out any possibility of changes in disputed audited costs in response to ExxonMobil saying that the US$214 million should not be calculated as cost oil.

The overall amount spent on exploration in the Stabroek Block from 1999 to 2017 totals US$1.6 billion.

If the company accepts that the US$214 million should not be calculated as cost oil, it means that Guyana will be entitled to 50 percent or US$107 million and the remainder will go to the co-venturers ExxonMobil, Hess and China National Overseas Oil Company (CNOOC).