Ram accuses Exxon of most brazen ‘accounting fiction’ in country’s history

Oct 19, 2025 News

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…says company’s claims on taxes an insult to every Guyanese

(Kaieteur News) – Attorney-at-Law and Chartered Accountant, Christopher Ram has accused ExxonMobil Guyana Limited (EMGL) of making misleading and inaccurate statements to cover its tracks of what may be the most brazen accounting fiction in the country’s history.

In his weekly column, ‘Every Man, Woman and Child in Guyana Must Become Oil Minded,’ published by Stabroek News on Saturday, the Lawyer dissected comments made by the President of EMGL, Alistair Routledge on Monday. The Exxon boss was asked whether the company will provide information to lawmakers in the United States (U.S.) who have requested clarity on its tax arrangements in Guyana.

For his part, Routledge told reporters that three U.S Senators may have been misled, as Exxon did not apply for any tax credits in the U.S. for its local Stabroek Block operations.

He explained, “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.”

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.”

According to Ram, this response, provided to the local media is an insult to the intelligence of every Guyanese or person of any intellect. The Attorney argued, “That single sentence has opened a window into what may be the most brazen accounting fiction in the country’s history…the claim is neither accurate nor credible,” referring to Exxon’s explanation on the tax certificates.

In accordance with terms of the 2016 Production Sharing Agreement (PSA), Exxon and its Co-Venturers pay no taxes to the country. Guyana nonetheless issues a tax receipt, indicating that those obligations were met locally.

Misleading

In flagging a blatantly misleading statement provided by Routledge Ram pointed out that the branch distributed some $674,454 million and still ended the year with more funds than at the beginning of 2024.

Paperwork

Ram shifted his attention to the tax certificates, legally required under the PSA, but somehow still not issued, according to the Exxon boss.

The Chartered Accountant pointed out, “The Agreement could not be clearer. The Minister pays. The GRA (Guyana Revenue Authority) issues the receipt. The obligation is discharged. That is the entire mechanism. There is no “working on paperwork.” There is only doing it or concealing it. If, six years after first oil, the parties are still fumbling with “paperwork,” it means either the Agreement has not been executed as written or it has been executed but hidden.” Either way, he views this as “a national embarrassment”.

Fake tax

Ram explained that while the EMGL President is performing confusion tactics openly, the financial statements of the three partners expose glaring misinformation.

He stated, “ExxonMobil Guyana Ltd. (2024) reports: “Revenue includes non-customer revenue of G$260,155.7 million … relating to Article 15.4 of the Petroleum Agreement,” and recognises a matching income-tax expense. That is the classic gross-up accounting technique: record fake revenue and fake tax so the books look balanced.”

As for Hess Guyana Exploration Ltd. (2024), its financial statements disclose that “A portion of gross production… is used to satisfy the branch’s income-tax liability and is recognised as sales revenue.” The Government’s oil becomes the company’s “revenue” and its “tax,” Ram pointed out.

Meanwhile, he noted that CNOOC Petroleum Guyana Ltd.’s financial statements go even further, stating that “The Minister accepts the appropriate portion of the Government’s share of profit oil as payment in full of the Contractor’s income-tax liability.” Ram was keen to point out that such language does not reflect Article 15 of the PSA, which requires the Minister to pay the tax to the Commissioner-General of the GRA – not merely to “accept” oil.

In conclusion, the lawyer reasoned that the companies all report tax payments, recognize it as revenue and enjoy the credit. He however questioned the lack of evidence for the tax payments since the contract clearly states that the minister must pay the GRA taxes owed by the oil companies out of Guyana’s share of oil, following which the tax body will issue a receipt and “proper tax certificates in the Contractor’s name”.

“Article 15 states that the tax must be paid from the Government’s share of oil revenue. Where, then, is the evidence of that payment? The Natural Resource Fund shows no deduction, no debit, no outflow. But no one – including the NRF investment committee and the auditors – seem to care a hoot,” the lawyer argued.

Ram was keen to note that to date, the Natural Resources minister has not published any tax receipts and neither is there any information from the GRA which suggests that it received the taxes “paid on behalf of the contractor”. Moreover, the Commissioner of Information, Charles Ramson (senior), has ignored lawful requests for these disclosures.

“This is the contract that is so sacred that it even trumps the country’s sovereignty, public officials’ integrity and most of all, the President’s thundering commitment to review and renegotiate”. Even a cake shop, run on a basic exercise book and a lead pencil, would manage its accounts with more care than this trillion-dollar industry. The result is a charade: a government pretending to pay, companies pretending to be taxed, and auditors pretending not to notice,” the lawyer stated.

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• accounting, accounting fiction, Chris Ram, Exxon, insult, misleading, Routledge, senators, taxes

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