The government is aligning itself with the Guyana Revenue Authority’s stance on the findings from the first-ever cost oil audit conducted on ExxonMobil’s Stabroek Block expenses, amounting to US$1.7 billion, which includes approximately US$214 million in contested costs.
General Secretary of the PPP, Dr. Bharrat Jagdeo, addressed this matter, emphasizing the government’s commitment to its resolution. He expressed disappointment with the Ministry’s decision to engage in further discussions with ExxonMobil, as the government had consistently maintained that it should be guided by the technical team at the revenue body.
Minister of Natural Resources, Vickram Bharrat, clarified that the Petroleum Unit acted without his knowledge. The ministry now supports Jagdeo’s position on the issue, and the GRA is in the process of finalizing the audit report.
IHS Markit, appointed in 2019 to conduct the audit, flagged US$214 million in expenses that should be returned to the cost bank and divided equally between Guyana and Exxon, the lead company in the Stabroek block consortium. The objective of the audit was to assess whether the company’s expenditure complied with the provisions of the Production Sharing Agreement and if the company was eligible for cost recovery.
Reported by [Samuel, NCN News]