Guyana now disputes US$279.1M in ExxonMobil declared expenses

The Guyana Government through the Ministry of Natural Resources has announced that it is disputing more than US$65M in declared expenses from the ExxonMobil in its second cost audit. It had already disputed US$214M from the first audit.

The second audit, which examined costs incurred between 2018 and 2020, reviewed US$7.2 billion in declared expenses. Of this amount, the government did not accept US$65.1 million.

In a release the Ministry of Natural Resources said its position was communicated to the co-venturers and they have since provided updated submissions, which are under review by the Government.

The first audit covering the period 1999 to 2017, which was conducted by IHS Markit is also in dispute and has headed for arbitration.

The Government, in keeping with its findings, has disputed approximately 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 Production Sharing Agreement.

The Ministry said audits were contracted by the Government of Guyana as part of its cost recovery verification process, which is provided for under the Petroleum Agreement with the Stabroek Block co-venturers — ExxonMobil, Hess, and CNOOC.

“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 says.

According to the Ministry, the third audit covering the period 2021 to 2023, has been completed and submitted to the Government with the Guyana Revenue Authority currently reviewing the submissions.

The Natural Resources Ministry said the Government is committed to its commitment to the prudent management of Guyana’s oil and gas sector and will continue to keep the public informed of its work in this regard.