Latest update January 3rd, 2025 1:48 AM
Exxon to respond to final audit report of US$7.3B expenses before the end of January
Kaieteur News- Before the end of January 2025, ExxonMobil Guyana Limited is expected to address the findings of the finalized audit into its US$7.3 billion expenses for Stabroek Block operations during the period 2018-2020.
Minister of Natural Resources, Vickram Bharrat, disclosed that ExxonMobil has 60 days to respond to the auditors’ findings. Given that the final audit report was shared with Exxon in mid-November, the deadline for its response falls before the end of January.
On November 16, Minister Bharrat had confirmed the submission of the final report to ExxonMobil. The second audit was conducted by local consortium VHE Consulting, a registered partnership comprising Ramdihal & Haynes Inc., Eclisar Financial, and Vitality Accounting & Consultancy Inc., with international support from SGS and Martindale Consultants. The contract for this audit was valued at US$751,000 (GY$156 million).
Minister of Natural Resources, Vickram Bharrat (Exxon to respond to final audit)
Chartered Accountant Floyd Haynes, one of the principals of VHE Consulting, disclosed that the auditing team has submitted the final report to the Ministry of Natural Resources and the Guyana Revenue Authority. “It is now in their possession…Please reach out to them…” Haynes had told this publication back in November.
Kaieteur News had reported that an analysis of the second audit report reveals missing details on key expenditures that were covered in the first oil audit that was done by British firm IHS Markit of the company’s 1999-2017 expenses. IHS had recommended that the Government of Guyana (GoG) disallow US$214 million in costs being claimed by Exxon for the misuse of Guyana’s oil profits and failure to justify expenses. The first report, commissioned by the Coalition government, provided comprehensive data on significant costs, such as those for supply vessels, drill rigs, SURF, helicopter services, and waste management, while these details are notably absent from the audit report by the local consortium.
Currently, citizens can access VHE’s “Initial Audit Report for the Stabroek Block Cost Recovery Audit – 2018 to 2020” on the Ministry of Natural Resources website. That version was published on April 12, 2024 and is 135 pages long.
(Exxon to respond to final audit report of US$7.3B expenses before the end of January)
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