Latest update March 26th, 2026 7:55 AM
Exxon denies seeking US tax break for Guyana’s oil
– claims senators were misled
(Kaieteur News) – President of ExxonMobil Guyana Limited (EMGL), Alistair Routledge on Monday said that the company did not apply for any tax credits in the United States (U.S) for its Stabroek Block operations in Guyana.
ExxonMobil Guyana President, Alistair Routledge responding to queries during a press conference on Monday
During a media conference at its new Ogle, East Coast Demerara Headquarters, Routledge said that the company was still working with the Guyana Revenue Authority (GRA) on the tax receipts that should be issued in keeping with the terms of the 2016 Production Sharing Agreement (PSA). The contract stipulates that Exxon will not be required to make tax payments to the Government of Guyana (GoG). Be that as it may, the GoG agreed to issue a receipt to the company, indicating that its local tax obligation was met.
Earlier this year, two Guyanese from the non-profit organisation, Oil and Gas Governance Network (OGGN) met with U.S lawmakers to highlight the issue, which they believe constitutes fraudulent tax practices, since Exxon is allowed to use the certificates issued by GRA to claim tax credits in the U.S.
In a statement last month, the U.S Senators said Exxon was given up to October 23 to explain its tax arrangements with Guyana. Several questions were listed for the company to respond to, as the U.S government probed the likelihood of a massive tax evasion by the oil giant.
Consequently, Routledge was asked to say whether the company will provide information to its home country regarding its local tax practices. According to him, “Exxon Mobil Corporation in its 23, 24 tax filings, there were no Guyanese tax credits that were included in either of those filings and you will recall that, prior to 2023, we were not making profits here in Guyana, so there were no tax credits from that. So, from this point up until this point, there have been no Guyana tax credits that have been used by Exxon.”
To this end, he said OGGN may have “misled” the Senators. He added, “As we focus on our business here, you know, we continue to be actually cash flow negative on a cumulative basis…there were no Guyana tax credits that were used by ExxonMobil in 2023 and 24 filings. So, 25 filings have not taken place yet but up to this point, no.”
When asked if the company received any tax certificates from the government, Routledge responded, “We haven’t applied any tax credits. We are working with the GRA on paperwork on taxes.”
It was reported that U.S. Senators Sheldon Whitehouse, Chris Van Hollen and Jeff Merkley sent a letter to ExxonMobil CEO Darren Woods requesting information on the company’s accounting of its U.S. tax liability as a result of the 2016 Stabroek Block Petroleum Agreement. “The letter raises questions about whether American taxpayers are subsidising ExxonMobil’s foreign oil production in Guyana, which the company carries out in partnership with a Chinese state-owned company,” the statement said.
In 2024, EMGL was granted a tax waiver by the GoG amounting to over US$1.3B. This is according to the company’s financials which indicate a tax expense of GY$260,155,788,763 for last year alone. During a press briefing with local journalists to discuss the company’s performance, EMGL refused to field questions on the tax certificates issued by the GoG and directed journalists to government officials.
The sweetheart deal Exxon signed in 2016 states in Article 15.1 that the Contractor (ExxonMobil Guyana Limited) as well as its affiliates shall not be subjected to tax, value-added tax, excise tax, duty, fee, charge, or impost in respect of income derived from petroleum operations, property held or transactions except as specified under the agreement. Further, Article 15.4 states that the sum equivalent to the taxes owed by the company will be paid by the Minister responsible for Petroleum to the Commissioner General of the GRA. It should be noted that the contract also allows for the issuing of a receipt to ExxonMobil, indicating that it has met the local tax requirements to avoid the burden of double taxation.
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