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Exxon used Guyana’s oil profits to make films and documentaries about its unprecedented success here

Nov 02, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – A team of expert auditors attached to Ramdihal & Haynes Inc., Eclisar Financial, and Vitality Accounting and Consultancy Inc with backing from Martindale Consultants, have unearthed a number of improper financial practices by ExxonMobil Guyana Limited.

According to a report seen by this news agency, the auditing team reviewed over US$7B in cost recovery bills by Exxon for the period 2018 and 2020. During its review, auditors said Exxon used US$1.5M of Guyana’s oil profits for film productions detailing the contractor’s progress and operational successes in Guyana’s Stabroek Block. Auditors were keen to note that Exxon had no right taking Guyana’s oil profits to cover public relation expenses as they have nothing to do with petroleum operations.

Auditors said, “A cost must be carried out for, or in connection with, production operations for the cost to be recoverable.” On that premise, auditors said Exxon’s use of US$1.5M to hire Myriad Global Media and Falcon Logistics film and documentary production services was improper.

Kaieteur News understands the money was spent on the production of films for ExxonMobil and its contractor Saipem, to produce a film on the Liza Phase Two Project including animation and graphic, and to provide communication tools throughout the Liza Project Development.

The expenditure also covered the production of a logo design for the Liza Phase Two Project, filming at various facilities for the Liza Project, and the production of a film to explain the flowstream process of a floating, production, storage and offloading (FPSO) vessel for external consultants in Guyana.

Auditors said a portion of the money also went towards the creation of a Liza Phase One First Oil appreciation book.

Auditors said they were told by Exxon that the costs are recoverable, contending that the media items were used for internal and external communications in connection with and for the benefit of Stabroek contractor petroleum operations. “There are several videos, pictures and key project information used on various platforms and outlets to communicate progress of FPSO construction, provide overview/education related to petroleum operations, etc. to Guyana. Content can be viewed at: www.guyanaprojects.com,” Exxon said.

Auditors were however not convinced by the company’s explanation and insisted that costs for public relations are not recoverable under the Stabroek Block Production Sharing Agreement (PSA). The team therefore instructed that the money be returned. It should be noted that this audit report prepared by Ramdihal & Haynes Inc., Eclisar Financial, and Vitality Accounting & Consultancy Inc is yet to be released to the public.

Kaieteur News had previously reported that the audit contract that was awarded to the consortium back in 2022 for US$751,000 and had a strict four-month deadline for completion. Notably, the US$7.3B costs which the auditors examined pertain to the investments for the Liza Phase One and Liza Phase Two Projects which are currently producing approximately 400,000 barrels of oil per day in the Stabroek Block.

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