US$19.6B audit: Illegal costs billed to Guyana by Exxon to be revealed after GRA reviews report

May 27, 2025 News

Kaieteur News- The Guyana Revenue Authority (GRA) is currently reviewing the report of ExxonMobil’s US$19.6B audit, completed by the local consortium, VHE Consulting.

Upon completion of its review, the Government of Guyana (GoG) said it will announce the disputed costs flagged by the audit team.

This information was provided by the Natural Resources Minister, Vickram Bharrat. In an invited comment, he explained that the disputed cost has not yet been revealed, since the final report remains with the GRA for review. Bharrat therefore confirmed that the sum flagged by the team will be shared upon completion of that process.

US$19.6B audit: Illegal costs billed to Guyana by Exxon to be revealed after GRA reviews report

Minister of Natural Resources, Vickram Bharrat

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.

Earlier this month, it was reported that Ramdihal & Haynes Inc; Eclisar Financial; and Vitality Accounting & Consultancy Inc. (VHE Consulting) completed the report and handed over same to the tax agency.

The third audit, which commenced in November 2024, was initially expected to be completed by March, but an extension was granted to the timeline by the GoG. It is important to note that the audit in question is the largest in the country’s history, yet auditors were granted a mere five months to conduct the review.

In a statement to the media last week, the Ministry of Natural Resources (MNR) provided an update on the two audits, previously conducted.

The first audit, covering the period 1999 to 2017, was conducted by IHS Markit. The Government, in keeping with its findings, has disputed approximately US$214 million in costs submitted by the co-venturers. This was communicated to ExxonMobil and its partners, and both Government and the co-venturers have agreed to activate the provision for a sole expert, as enshrined in the Production Sharing Agreement (PSA).

The Government said it has submitted multiple nominees for the sole expert. The sole expert is an established dispute resolution mechanism, which can resolve disagreements over the cost recovery claims. ExxonMobil, acting on behalf of the co-venturers, has until May 31, 2025, to provide its response.

Meanwhile, MNR said the second audit, which examined costs incurred between 2018 and 2020, reviewed US$7.2 billion in declared expenses. Of this amount, US$65.1 million was not accepted by the Government. “This was communicated to the co-venturers and they have since provided updated submissions, which are under review by the Government,” the Ministry noted.

The final reports for the first and second audits are available on the website of the Petroleum Management Programme via this link: http://petroleum.gov.gy/

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Audit, GRA, illegal costs, review, third

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