ExxonMobil Guyana Limited and the Government of Guyana have still not reached an agreement on a Sole Expert to resolve the dispute over the US$214 million in questionable expenses claimed by the oil giant.

An audit conducted by IHS Markit had found that of the US$1.67 Billion in claims made by the oil company for operational expenses in the Stabroek Block for the period 1999-2017, some US$214M were questionable.

The Sole Expert is expected to determine whether the US$214 million in questionable expenses as flagged by IHS Markit were legitimate.

But after more than a year of agreeing to the process as provided for in the Stabroek Block Production Sharing Agreement (PSA), the Government, at the level of the Guyana Revenue Authority (GRA), and ExxonMobil, have not reached an agreement despite nominations from both sides.

At a press conference today, ExxonMobil Guyana Vice President and Business Services Manager, John Colling, assured reporters that the two sides are working to find a mutually agreed expert.

“I can assure you that ExxonMobil Guyana Limited as well as the Government is diligently working to find a sole expert which is acceptable to both parties,” he told reporters.

Colling said the two sides are still locked in discussions regarding the selection of the Sole Expert. However, he said it is important for the Sole Expert to meet certain criteria.

“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,” the ExxonMobil Guyana Vice President said.

Colling, however, declined to disclose how many nominees Exxon has put forward to date. He said should the two sides fail to reach an agreement on the Sole Expert, one would be appointed by the International Chamber of Commerce (ICC).

 “The process is outlined very clearly in the petroleum agreement. So the parties in this case, ExxonMobil Guyana Limited and the Government have looked at different sole experts for potential selection. If we are unable to arrive at a mutual selection that can be referred to the ICC to make the selection, which very well maybe the next step in the process,” Colling said.

Exxon has long maintained that it intends to recover the entire US$1.678 billion in costs for exportation work done between 1999 and 2017.

Related posts:

Still no decision on Sole Expert to resolve questionable costs impasse between GRA and ExxonMobil Guyana now disputes US$279.1M in ExxonMobil declared expenses ExxonMobil responds to claims of wrongdoing in handling of revenue and expenses for oil blocks Jagdeo upset with Natural Resources Ministry engaging ExxonMobil on audit after GRA completed its work