GRA still finalising 3rd Exxon audit

Oct 07, 2025 News

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…Oil Minister hesitant to disclose initial disputed sum flagged

(Kaieteur News) – The Guyana Revenue Authority (GRA) is locked in discussion with ExxonMobil Guyana Limited (EMGL) on the findings of the third audit conducted by VHE Consulting.

The auditors were tasked with reviewing some US$19.6B in expenses incurred by the operator of the Stabroek block, during the period 2021 to 2023.

In an invited comment on Monday, Natural Resources Minister, Vickram Bharrat told this publication that the tax agency is still conducting its review with Exxon, as provided under the terms of the 2016 Petroleum Agreement (PA).

To this end, he was hesitant to disclose the initial disputed sum flagged by the auditors. Bharrat explained, “The auditors would flag a figure and then it goes back to the company and the company might be able to produce evidence or receipts for everything so it keeps adjusting all the time so it’s no use I give you a figure and then it might raise questions all around.”

The minister urged that the GRA be granted a few more days to complete the process with the oil company. “Remember they would give the company time to provide evidence of spending and so,” he said while assuring that the third audit report will be made public on the website upon completion of the ongoing exchanges between Exxon and the GRA.

In May this year, Bharrat said government would reveal the disputed sum after the GRA completed its review of the report. His comments came on the heels of an announcement 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.

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.

Just last week Chairman of the Alliance For Change (AFC), David Patterson raised concern regarding the audit process which he deemed a “farce”. In an interview with Kaieteur News, the former Minister highlighted that three audits have been completed to date but government is no closer to recovering any of the money blatantly misused by Exxon during the respective periods.

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.

With government’s failure to recover the sums flagged to date by the auditors and reveal key information on the third audit, Patterson said 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.”

Further, as government remains tightlipped on the audit findings of the largest review completed to date of the company, the former 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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• Audit, Exxon, Giuana oil, GRA, VHE Consulting

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