ExxonMobil pays no taxes, but boasts that Guyana benefitting from taxes generated by workers, other activities

Feb 21, 2024 ExxonMobil, News, Oil & Gas

ExxonMobil Guyana Limited (EMGL) President, Alistair Routledge

By Renay Sambach

Kaieteur News – While ExxonMobil Guyana Limited (EMGL) and its partners in the Stabroek Block pay no taxes to Guyana, the company’s President Alistair Routledge yesterday boasted about Guyana benefitting from taxes generated from the oil activities happening in the country.

Routledge was at the time addressing participants at the 2024 Guyana Energy Conference and Supply Chain Expo, which is being held at the Guyana Marriott Hotel in Georgetown.

He highlighted the significant contributions made by Exxon’s oil activities to Guyana’s economy, citing statistics indicating over 6,200 Guyanese employed in the oil and gas sector, with more than 1,500 local businesses benefiting from related opportunities.

Additionally, he noted that ExxonMobil had invested over $1.5 billion USD in local businesses, while contributions to the Natural Resource Fund (NRF) exceeded $3.6 billion USD.

To this end, EMGL President underscored the Government of Guyana’s prudent utilization of oil revenues and tax revenues to bolster infrastructure development, enhancing the country’s competitiveness and economic growth prospects. In fact, he said, “The government is using…the tax revenues that this enhanced activity in (the) economy is generating to continue, to prudently increase investment in the country, in the infrastructure and that too, will feed into ultimately the competitiveness of this economy for the future.”

The heavily critised Production Sharing Agreement (PSA) Guyana signed with ExxonMobil and partners has placed Guyana in a position where it is waiving billions in taxes annually. Since production activities commenced in Guyana in December 2019 on Guyana’s first Floating Production Storage and Offloading (FPSO) vessel- Liza Destiny- the country began losing massive tax revenues.

Article 15.1 of the PSA stipulates that the Contractor (ExxonMobil Guyana Limited) as well as its affiliates shall not be subjected to tax, value-added tax, excise tax, duty, fee, charge or impost in respect of income derived from petroleum operations, property held or transactions except as specified under the agreement. It goes on to state at Article 15.4 that the sum equivalent to the taxes owed by the company will be paid by the Minister responsible for Petroleum to the Commissioner General of the Guyana Revenue Authority (GRA).

Moreover, Routledge underscored the collaborative partnership between ExxonMobil and Guyana, and stakeholders. He said, “The importance of balancing economic development with protection of the environment and looking after people is a critical combination and thank you to all of you in the room who have been part of that because we certainly can’t do this alone. So, thank you for being part of the journey.”

In closing, EMGL President noted, “We’re excited to be here. Delighted to be a part of this successful journey and thankful for all of you playing your part.”

Alistair Routledge, Exxon, gas, oil, taxes

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