Latest update September 15th, 2026 10:20 AM
ExxonMobil paid US$11B in taxes, Guyana received zero
President, ExxonMobil Guyana Limited, Alistair Routledge
Kaieteur News – In the first three months of 2024 ExxonMobil forked out US$11B in income taxes for its global operations but none were paid to Guyana.
Exxon Mobil Corporation (XOM) in its first quarter report for 2024 details “total taxes were US$11.0 billion, a decrease of US$2.1 billion from 2023.” The oil giant explained that income tax expense was US$3.8 billion compared to US$5.0 billion in the prior year. “The effective income tax rate, which is calculated based on consolidated company income taxes and Exxonmobil’s share of equity company income taxes, was 36 percent. This increased from the 34 percent rate in the prior year period due primarily to a change in a mix of results in jurisdictions with varying tax rates,” the company pointed out.
In the meantime, it was noted that total other taxes and duties decreased by US$0.9 billion to US$7.2 billion. Guyana has been the driving force of the record profits registered by ExxonMobil, but due to the lopsided Production Sharing Agreement (PSA) it signed in 2016 with the Government of Guyana (GoG), the company and its sub-contractors are exempted from tax payments.
In fact, the oil deal provides for taxes owed by the company to be paid by Guyana. The PSA states at Article 15.1 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). Notably, the GoG also agreed to issue a receipt to ExxonMobil, indicating that it has met the local tax requirements to avoid the burden of double taxation.
Article 15.5 of the contract states, “Within one hundred and eighty (180) days following the end of each year of assessment, the Minister shall furnish to Contractor proper tax certificates in Contractor’s name from the Commissioner General, Guyana Revenue Authority evidencing the payment of the Contractor’s income tax under the Income Tax Act and corporation tax under the Corporation Tax Act. Such certificates shall state the amount of tax paid individually on behalf of Contractor or parties comprising the Contractor and other particulars customary for such certificates.”
A legal suit brought against these abusive tax giveaways by the Publisher of this newspaper, Mr. Glenn Lall was unsuccessful as the Court dismissed the case in February 2023.
Since oil production activities commenced in 2019, Guyana has lost US$2,841,000,000 in taxes to oil and gas companies. Kaieteur News reported that tax exemptions granted between 2019 and 2021, according to previous AG Reports, amount to a whopping US$2.3 billion. In 2019, Guyana lost US$600 million in taxes and in 2020 another US$685 million; this was followed by US$1 B in tax exemptions in 2021 and US$541 million in 2022. Information on tax waivers for 2023 has not yet been made public.
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