ExxonMobil: We remain committed to transparency and welcome open, fact-based discussions

Jul 03, 2025 Letters

Dear Editor,

Please permit me space in your publication to respond to recent media reports concerning the financial reporting and profit-sharing arrangements under the Stabroek Block Petroleum Agreement (PA) between the Contractor Group and the Government of Guyana. It is important to clarify the facts and reaffirm our commitment to transparency and compliance. The accusation that we manipulate accounting standards to improve our financial results is unfounded and defamatory.

ExxonMobil Guyana’s annual financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), which are globally established to ensure consistency and transparency. Our financial statements are subject to thorough, independent audits to ensure accuracy and compliance. Revenues and expenses are recorded per the IFRS, with capital costs depreciated over time. Financial statements are filed with the Deeds Registrar in accordance with the laws of Guyana.

The PA tracks investment, cost recovery and profit sharing. It allows the Contractor Group to recover its up-front investment in developing Guyana’s oil resources, an investment that now exceeds US$40 billion. Expenses and capital costs are recorded when incurred and recovered up to a maximum of 75% of gross revenues from the sale of hydrocarbons each month, as prescribed by the agreement. After cost recovery, the remaining revenue is split 50/50 between the Contractor Group and the Government of Guyana. On top of this, the Government receives a 2% royalty based on the gross revenues from all volumes sold. The Contractor Group pays this royalty from its profit share. The Government audits cost recovery separately, in addition to the independent audits of our IFRS statements.

Certain recent media reports have incorrectly compared IFRS accounting profits to PA profit share and royalty payments to the Government. This is entirely misleading. In particular, revenue recognition and capital costs are treated differently between the two accounting processes. The PA is achieving its purpose: enabling the development of Guyana’s oil sector while ensuring the country benefits through royalties and profit sharing without bearing the financial risks of investment. We remain committed to transparency and welcome open, fact-based discussions on these matters.

Sincerely,

John A. Colling

Vice President and Chief Financial Officer

ExxonMobil Guyana Limited

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expenses, fact-based discussions, hydrocarbons, International Financial Reporting Standards, Stabroek Block Petroleum Agreement

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