EITI Report flags secrecy of Exxon’s audit findings

Jan 03, 2024 ExxonMobil, News, Oil & Gas

Kaieteur News – Guyana’s Extractive Industries Transparency Initiative (EITI) Report for 2021 has flagged the secrecy of ExxonMobil’s audit reports.

EITI is a global standard to promote transparency and accountability in the oil, gas and mining sectors.

Guyana’s fifth EITI Report was prepared by an independent Administrator, Hart Resources Ltd, registered in the United Kingdom, while BDO Professional Services Inc, a Guyanese firm provided sub-consultancy. It has noted that while two audits have been conducted to date these have not been made available to the public.

The core objective of the EITI report is to help the understanding of the level of contributions of the extractive sector to the economic and social development of Guyana to improve transparency and good governance at all levels of the extractive industry value chain.

Since 2019 ExxonMobil Guyana Limited (EMGL) began producing oil in the Stabroek Block. To this end, the report noted, “The amount of cost oil deductible by EMGL in arriving at profit oil is subject to audit by the Government of Guyana. At the date of this report, two such audits were carried out by separate teams, but agreement has not been reached on any potential adjustments to be made.”

It added, “These reports have not been made available to the public as the audits are considered incomplete.”

Meanwhile, the report went on to recommend that the Audit Office considers training on the oil sector, as the burgeoning industry will place new demands on the work required.

“We recommend that the Audit Office should review what resources will be required to put into effect a programme of bring government audits up to date; and should review whether training on the oil sector, as far as relevant to the responsibilities of the Audit Office, is required for staff in order to properly and competently carry out audits of entities operating in or exposed to that sector,” the report states.

Following the review, it noted that the Audit Office should include any additional financial costs in its budget submission to the National Assembly.

Guyana’s first oil audit was conducted by a British firm, IHS-Markit. The contract was awarded by the Coalition government in September 2019 for the company to review some US$1.6 billion in costs incurred by Exxon during the period 1999 to 2017.

A second audit contract was awarded by the incumbent administration in May 2022 for a local consortium, VHE supported by an overseas company, to undertake a US$7.3B review of the oil company’s expenses racked up between 2018 and 2020.

There has been public outcry since both audit reports, though handed over to government have not been shared publicly. The first report was leaked rather than officially shared through government channels. The second report however remains hidden from the public to date.

British firm, Extractive Industries Transparency Initiative (EITI)., Exxon, IHS Markit

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EITI Report flags secrecy of Exxon’s audit findings

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