While the Government has indicated that the Head of the Petroleum Unit will face disciplinary actions over the oil audit fiasco, Vice President Bharrat Jagdeo on Thursday shied away from offering details on the disciplinary actions that will be taken, instead directing all queries to the Permanent Secretary of the Natural Resources Ministry.

The Petroleum Unit Head, Bobby Gossai, has been blamed by the Government for the US$211 million slashing of disputed oil costs.

At a press conference on Thursday at the PPP Freedom House headquarters, Vice President Jagdeo revealed that at a recent Cabinet meeting, President Irfaan Ali contacted the ExxonMobil company and sought clarity on a purported agreement that “resulted” in the findings of the Stabroek Block Cost Recovery Audit being significantly altered to the point that a disputed sum of US$214 Million was reduced to US$3 Million.  

The audit, which was conducted by the international accounting firm, IHS Markit, found that US$214 Million in claims made by Exxon was unjustified.

However, the disputed sum was reduced to approximately US$3 Million following a reported intervention by the Head of the Petroleum Unit.

“At the meeting of the Cabinet, the President called Exxon, Exxon said they never told [David] Patterson that there was an agreement. Patterson reported that Exxon told them that there was an agreement on the $214, they said, they never said that to Patterson. They said they submitted documents to support the reduction,” Jagdeo told reporters.  

Mr. Jagdeo said the Head of the Petroleum Unit, Bobby Gossai and the Commissioner General of the Guyana Revenue Authority (GRA), Godfrey Statia also appeared before Cabinet to answer questions in relation to the controversy.

Gossai had reportedly initiated the reduction, though it was the responsibility of GRA to address the findings of the report.

“He [the President] spoke to Gossai and Statia together. Gossai said he sent documents to Statia supporting the letter the Minister [of Natural Resources] wrote in 2022 about what Exxon had submitted,” Jagdeo told reporters.

According to the Vice President, Gossai told the President that he had submitted supporting documents to the Guyana Revenue Authority to support the reduction, but the GRA Commissioner General said those documents never reached his office.

The Vice President said that it was after the two top ranking officials appeared before Cabinet that the decision was taken to take disciplinary action against Gossai.

It was the Natural Resources Minister, Vickram Bharrat, who announced last week that disciplinary action would be taken against Gossai.

The Natural Resources Minister said it was clear that Gossai acted without the requisite authorization to engage with the oil company.

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