Latest update March 26th, 2026 7:55 AM
Exxon audits a farce – Patterson
…as Govt. yet to recover US millions misused by oil companies
Kaieteur News – With three cost oil audits conducted to date of ExxonMobil, Guyana is no closer to recovering any of the money blatantly misused by the Stabroek Block consortium. This, according to former Minister, David Patterson raises deep concern about whether these audits are serving its purpose.
Guyana presently allows ExxonMobil and its Co-Venturers to use its oil to cover expenses associated with developing the resources in the Stabroek Block. Notably, the country does not exercise any oversight in the award of multimillion-dollar contracts awarded to companies by Exxon.
Former Minister, David Patterson
“…they (government) have no interest really in trying to upset Exxon. I think they are more pro-operators than the operators themselves.” – Patterson
Instead, after spending Guyana’s oil money, the company then submits a bill, or its cost recovery statements. The country is responsible for ensuring it was not overcharged for any of the goods and services procured, or billed for any expenditure that is not allowed under the 2016 Petroleum Agreement (PA).
In Guyana’s case it is extremely crucial for these audits to be conducted as a whopping 75% of production monthly is deducted for cost. So far, three audits have been completed but Guyana is yet to recover a cent from Exxon, flagged by auditors.
The first audit of Exxon covered the period 1999-2017. During this timeframe, Exxon said it incurred US$1.6B in expenses, but the British auditors found US$214M of those costs were wrongfully included. Government has said it is not budging on the figure and will fight Exxon to return the sum.
Meanwhile, the second audit covered the period 2018-2020. A Guyanese audit team were tasked with reviewing some US$7.2B in costs this time and found US$65.1M incorrectly charged. Additionally, the third audit for the years 2021-2023, of a whopping US$19.6B was completed since May this year but the disputed costs flagged by the local audit team has not been revealed.
Farce
Minister of Natural Resources, Vickram Bharrat
With government’s failure to recover the sums flagged to date by the auditors and reveal key information on the third audit, Patterson believes the entire process is a farce.
He said, “Well, I think that is a farce. You know, I mean, I think it is absolutely farcical, because, I mean the first audit was completed. That’s under dispute. They said they were going to arbitration. We have heard nothing. The second audit was supposed to be completed. We questioned the validity of that audit, how sound it was, but it’s been completed. That’s under challenge. The third audit was supposed to be completed, that still hasn’t been made public.” Patterson continued, “So it really and truly, it’s laughable to think we’re into almost our tenth year since oil discovery and six years of oil production and we can’t simply get one audit correct? One audit publicly done and sealed.”
Guyanese should worry
As government remains tightlipped on the audit findings of the largest review completed to date of the company, the former Member of Parliament (MP) expressed concern. He noted, “This is the same government that reduced the amount from US$214M to US$3M, so they have no interest really in trying to upset Exxon. I think they are more pro-operators than the operators themselves.” According to him, Guyanese should be worried that the government is acting in the shadows when dealing with the multinational corporation.
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Yeah well Exxon has forecast the world demand for crude is dwindling and they are cutting employment within the company! Giess what? I stated earlier in the week the Guyanese who voted for the PPP WILL be shocked when they are faced with stagflation, inflation, recession and nothing to eat because the money is not here.
The PPP government has placed all their eggs in one basket last year and bombarded the world market for loans driving the country into massive debt, yet they are planning more expansive infrastructure building as the world economy crumbles. I feel sorry for the Guyanese people who sat by quietly and silently, allowing the elites to endure and fill their pockets. While they eat, you will starve. My prediction of a world wide economic collapse is knocking at the door people!