President of ExxonMobil Guyana, Alistair Routledge, has denied that the U.S oil giant received tax credits for 2023 and 2024 from Guyana, telling reporters that New York based Non-Government Organisation – Oil and Gas Governance Network (OGGN) may have “misled” the US senators on the tax issue.

Last month, three US Senators – Sheldon Whitehouse, Jeffrey Merkley and Chris Van Hollen – wrote the Chairman and Chief Executive Officer of ExxonMobil, Darren Woods, expressing concern that American taxpayers may be subsidizing ExxonMobil’s operation in Guyana through the use of foreign tax credits. .

But during a press conference at ExxonMobil’s Ogle Office today, Mr. Routledge shut down the concern.

“It would appear that OGGN perhaps misled the senators somewhat. ExxonMobil Corporation, its 23, 24 tax filings, there were no Guyanese tax credits that were included in either of those filings,” Routledge told reporters.

But, in expressing their concerns, the Senators pointed out that under US laws and regulations, ExxonMobil is considered a “dual capacity” taxpayer due to the fact that it is a multinational company that pays an income tax to a foreign country while also receiving a specific economic benefit from that foreign country, such as the right to extract oil and gas.

However, under the Stabroek Block PSA, the oil giant pockets 75% of the value of the oil produced and sold in cost recovery, while remaining 25% of production is split between ExxonMobil and its partners, and the Government of Guyana.

The Senators were keen on pointing out that under the PSA, the Government pays the income taxes for ExxonMobil Guyana out of the Government’s share of the oil profits.

The US Senators have suggested that the rules that prohibit US companies from claiming foreign tax credits (FTCs) to lower their US tax bill for payments that amount to subsidies from foreign government should apply. They have said that the oil giant may not be entitled to shrink its US bill through any FTCs.

But Routledge maintains that no tax credits have been applied. 

“Up until this point, there have been no Guyana tax credits that have been used by ExxonMobil. But I would say…, as we focus on our business here, we continue to be actually cash flow negative on an accumulative basis,” Routledge said.

He said ExxonMobil is currently working with the Guyana Revenue Authority to finalize its tax receipts.

In addition to the tax concerns, the US Senators also questioned Exxon on its decision to partner with CNOOC – a Chinese state run company – for its operations in the Stabroek Block.

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