Latest update March 21st, 2026 12:30 AM
Latest News
- Despite paying no tax to Guyana, Exxon shuts door to talks with Govt. on windfall taxes
- Exxon to start spending on 8th project next month without approval from Govt.
- Cubans queue for water in Havana amid fuel and power crisis
- Trump calls NATO allies ‘cowards’ over alleged lack of support for Iran war
- ‘Justice! I just want justice’ – declares teen mom, stabbed over 25 times
Despite paying no tax to Guyana, Exxon shuts door to talks with Govt. on windfall taxes
(Kaieteur News) – President of ExxonMobil Guyana, Alistair Routledge on Thursday made it clear that the company is not willing to engage the Government of Guyana (GoG) to apply a windfall tax on the excess profits being generated in the Stabroek Block due to the higher oil prices.
A windfall tax is levied by governments on companies that earn sudden, excessive profits due to unexpected conditions rather than core business strategy.
The conflict in the Middle East has resulted in oil prices soaring past U.S. $100 per barrel for the first time since 2022.
Exxon Country Manager, Alistair Routledge
During the company’s first press conference for the year held at its Ogle Headquarters, East Coast Demerara, Kaieteur News asked Routledge whether Exxon is open to discussions on applying a windfall tax.
In response, Routledge bluntly stated, “No we’ve been very clear on that.” He explained that “stability” is key to investment as he pointed out that the company has committed to spend US$60 billion in the country.
As such, the country manager noted, “It’s extremely important that there’s a stable investment climate. These spikes in oil price happen from time to time, but they’re not predictable, and when they do happen, they are what enable us, then, to carry through the periods when oil price drops again.”
Moreover, he added, “I’ve yet to hear a government or office to give us a rebate when oil prices fallen, because, of course, they’re also losing it. So, the contract, the construct is designed to incentivize the investment, and for the benefits to be there for all the parties. It’s delivering on that.”
Guyana could gain at least U. S$9 million more daily from ExxonMobil if a windfall tax of 25% is applied to the excess revenue currently being earned.
The conflict in the Middle East has resulted in oil prices soaring past U.S. $100 per barrel for the first time since 2022.
At the beginning of the year, Finance Minister, Dr. Ashni Singh estimated inflows from the sector at an average of just $59 a barrel.
Currently, Guyana is producing an average of 900,000 barrels per day (bpd), meaning that Exxon is generating a whopping U.S.$40 extra on each barrel. In other words, the Stabroek Block is now generating U.S.$36 million more daily than was anticipated by government.
By applying just 25 per cent tax to the excess profits, Guyana could earn U.S$9M more daily from the windfall profits being enjoyed by Exxon or U.S$270 million a month.
In 2022, Canada had moved its royalty charged between five and 40%; the US in December of 2021, raised its royalty rate higher than the 18.75% it had been receiving while the UK slapped a one-off 25 per cent tax on the oil companies there.
Be that as it may, Vice President Bharrat Jagdeo had dismissed calls for the government to institute windfall taxes from ExxonMobil. This is especially significant since Guyana does not receive any taxes under the 2016 Production Sharing Agreement (PSA).
The sweetheart deal Exxon 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.
Discover more from Kaieteur News
Subscribe to get the latest posts sent to your email.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Sir. Ronald Sanders
The GHK Lall Column
Weekend Cartoon
