Guyana waived US$525M in taxes for Exxon in 2025

Apr 28, 2026 News

…but borrowed US$527M from U.S. EXIM Bank

(Kaieteur News) – In a nation flushed with natural resources, particularly billions of barrels of sweet light crude offshore, a deeply worrying explosion in borrowing continues that could have been avoided through the promised “renegotiation/ better contract administration.”

Last year alone, Guyana waived a massive US$525M in taxes for the American Stabroek Block operator, ExxonMobil while turning to its home country for a loan to support a “transformational project” at Wales, West Bank Demerara.

It was reported that the Government of Guyana (GoG) signed a US$527 million loan agreement with the United States Export-Import (US EXIM) Bank, for the Gas-to-Energy (GTE) project in January 2025, but that same year, Guyana gave the American company a tax write off that could have funded that very initiative.

Figures from the 2026 Budget indicate that the Stabroek Block generated some US$18B in 2025 – more than two times this year’s national budget. But all of that revenue did not stay in Guyana. In accordance with the terms of the 2016 Production Sharing Agreement (PSA), 75% of that value is recovered by the operator for its investment. Therefore, US$13.5B went towards cost recovery in 2025.

Guyana waived US$525M in taxes for Exxon in 2025

Flashback to when Guyana inked the US$527M loan with the US EXIM Bank for the Wales Gas-to-Energy project in 2025.

The remaining 25%, which was approximately US$4.5B was split with Guyana as profits. To this end, Guyana and Exxon each received about US$2.3B since profits are split 50/50 – and the country receives an additional 2% for royalty.

Had Exxon paid its fair share of corporate taxes in 2025, which is 25% of its earnings, Guyana would have been US$525M richer and could have financed the Wales project without the need for another loan that will be repaid with interest.

This is particularly troubling for the developing nation since Exxon not only boasts about paying taxes to the GoG internationally, but the country has been forced to turn to international lenders to finance its expansion agenda.

Guyana ended 2025 with a whopping US$7.7B in debt that is expected to reach double digits by the end of this year to about US$10B.

While some term the Exxon deal as a “giveaway” to the contractor by the previous APNU/AFC Coalition government in 2016, the PPP General Secretary and then Opposition Leader, Bharrat Jagdeo had strongly criticised the non-payment of taxes, insisting that a PPP-led government would renegotiate those arrangements. This vow even made its way into the party’s 2020 elections manifesto where it promised to “renegotiate/ better contract administration” both of which have been given a failed grade by analysts such as Christopher Ram.

In a 2019 radio interview on 94.1 FM, here is what the Vice President had to say: “They sold us out to the foreigners – the oil companies. Every time there is a find there, our people should be sad because nothing comes our way. We are going to renegotiate those contracts because that’s not what we had in mind. When we were in the early days, we were coaxing the people (ExxonMobil and partners) to go along. They (APNU+AFC) came into office (and met) 3 billion barrels of proven reserves and then gave up zero royalty, no taxes, no ring-fencing, no local content for these people to spend any money here.”

He continued: “Paying our people GY$72,000 a month when the foreigner is getting US$10,000. Bringing water from California to drink here. We are paying for all that. Landscaping, they wanna contract it to a company coming from abroad and the Trinidadians and others are just walking in not only in the oil sector but they are getting all the prime lands too… So that is why I got back into politics. I’m not prepared to see this happen; I have no desire to be President again.”

The PSA and taxes

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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ExxonMobil, Guyana Oil, Oil tax, Stabroek Block, US-EXIM bank

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