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Nation yet to see ExxonMobil’s US$7.3B final audit report four months after GRA instructed its release
Kaieteur News – Although Commissioner General of the Guyana Revenue Authority (GRA), Godfrey Statia, ordered the release of the final audit report for ExxonMobil’s US$7.3B expenses since November last year, Guyanese are yet to see the document.
Since November, Statia informed this publication that the local consortium, VHE Consulting, has been instructed to release the finalised second audit for the company’s expenses, incurred between the period 2018 to 2020.
Commissioner General of the Guyana Revenue Authority, Godfrey Statia
At the time, the Commissioner General said, “The final audit will be released within the week. I have already given the go-ahead to VHE for them to do so.”
Subsequently, it was reported that Natural Resources Minister Vickram Bharrat assured that the report would be made public the following week. The second audit was conducted by VHE Consulting, a registered partnership comprising Ramdihal & Haynes Inc., Eclisar Financial, and Vitality Accounting & Consultancy Inc.
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. 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.
Minister of Natural Resources, Vickram Bharrat
Notably, VHE was recently awarded a $312 million contract for the third oil audit of Exxon’s Stabroek Block expenses for the period 2021 to 2023.
As the nation awaits the publication of the final report, citizens have embarked on a protest against the lack of information in Guyana, complaining of the stone walls they continue to face when attempting to access information that should be public.
It should be noted that audits are critical to ensuring that the country is not cheated by the oil companies through the procurement of goods and services from the company’s contractors.
This process is particularly important since the oil contract with ExxonMobil and its partners provides for the operator to deduct 75% of the monthly revenues generated to clear its expenses. The remaining 25% is then shared with Guyana as profits. The reports provide a summary of key findings and recommendations by the audit team.
In the most recent Guyana Extractive Industries Transparency Initiative (GYEITI) report, the country’s failure to complete any of the two cost oil audits conducted to date was highlighted.
In its Report for the year 2022, the transparency watchdog explained that the EITI Standard states, “implementing countries are expected to disclose final cost and tax audit reports, or summaries of those reports, including costs deemed as non-recoverable and costs deemed non-deductible and any additional revenues to be collected as a result”.
Consequently, the document notes, “At the date of this report, two such audits have been carried out by separate teams, but agreement has not been reached on any potential adjustments to be made.”
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