Latest update November 21st, 2024 1:00 AM
Govt. issues RFP for third audit of Exxon’s 2021-2023 expenses
Kaieteur News – The Guyana Government issued a Request for Proposals (RFP) on Thursday for consultants capable of conducting a cost recovery audit of ExxonMobil’s expenses in the Stabroek Block. The audit would also entail a validation of the State’s share of profit oil for the period 2021 to 2023.
The Stabroek Block which holds 11 billion barrels of oil-equivalent resources
This marks the third such audit the Guyana Government has embarked on. The first audit was done by a British firm, IHS Markit for the period 1999 to 2017. That audit examined expenses totalling US$1.7B. While the report for this exercise has been completed, it has never been released to the public. The second audit was done by a local group, Ramdihal & Haynes Inc., Eclisar Financial, and Vitality Accounting & Consultancy Inc. bolstered by the international support of SGS and Martindale Consultants. That audit examined expenses totalling US$7.3B covering the period 2018 to 2020.
The RFP for the third audit said preference will be given to local companies that are engaged in joint ventures or consortia with globally acknowledged accounting and audit firms. Government said these firms should have a comprehensive background in contract compliance reviews, joint venture audits, and auditing petroleum costs within the framework of production sharing contracts and other petroleum related agreements, along with an understanding of their fiscal consequences.
Further, the RFP states that consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the services, such as description of similar assignments, experience in similar conditions, and availability of appropriate skills among staff.
Under the present Terms of Reference (ToRs), the consultant is invited to fulfill the following scope of works: conducting a pre-audit analysis; devising an effective audit plan inclusive of an appropriate methodology; executing the audit in adherence to the provisions of the Stabroek Block Petroleum Agreement and applicable local laws, regulations, and procedures; as well as international good practices and standards.
The scope also includes conducting verifications of the crude oil valuation pursuant to the provisions of the petroleum agreement for the audit period as well as verifying royalties remitted to the government for the said period.
The selected company will also be required to validate the accuracy of the total government share of petroleum for the period under review, and assessing the impact of the audit on future profit oil revenues.
With respect to experience and required qualifications, the government said the consultant as a firm, or with its partners (local and foreign) combined must have completed at least three similar assignments during the past seven years. Kaieteur News understands that proposed team members should have in-depth international expertise, local and regional knowledge, and access to benchmarking for comparable deep-water environments.
The Audit Team must also consist of professionals who are transfer pricing specialists, financial analysts, tax lawyers, cost accountants, crude oil valuation experts, chartered accountants, Certified Public Accountants, Certified Fraud Examiners, procurement and contracts experts, a partner who specializes in natural resources/risk management, and a partner with expertise in cost recovery audits in oil and gas.
Interested consultants may obtain further information by email at [email protected] or from the following address: Permanent Secretary at the Ministry of Natural Resources, located at 96 Duke Street, Kingston, Georgetown, Guyana.
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