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US$1B in taxes waived for Hess in 2025 – financials reveal
(Kaieteur News) – While each citizen in Guyana is subjected to the tax laws of this nation, an American energy giant and its business partners receives a free pass, denying the nation of huge sums to further its development agenda.
In 2025, one company alone walked out with a free US$1 billion as a result of tax waivers it received from government.
This is according to the financials recently filed by Hess Guyana Exploration Limited, a 30% stakeholder in Guyana’s oil rich Stabroek Block. It’s co-venturers CNOOC has 25% shares and ExxonMobil holds 45%, operating the world’s most exciting exploration basin currently. These companies which also received massive tax waivers have not yet made their financial statements public.
The financial statement published by Hess.
In the meantime, Hess has reported profits for 2025 which outpaced revenue flows into Guyana’s Natural Resource Fund (NRF) during the same period, again raising questions about the lopsided oil deal signed by the Coalition in 2016.
Profits for Hess last year soared to US$3B while Guyana merely received US$2.5B in profits and royalty. Had Guyana collected its fair share of taxes, the country could have received a whopping US$1B in additional revenue from Hess alone.
The oil company reported an income tax expense of GY$201.8B or approximately US$1B. This is almost the same amount that was allocated in the National Assembly that year for infrastructure development which was GY$209B.
Chartered accountant and attorney, Christopher Ram on Sunday argued, “Guyanese taxpayers are effectively subsidising one of the most profitable oil operations in the world while some of the world’s most successful companies enjoy a virtually tax-free pipeline for exporting billions abroad to the world’s largest economy.”
Moreover, Ram pointed out that these companies pay no corporation tax in Guyana, yet receive certificates declaring that taxes were paid on their behalf by the Guyana government. These certificates can then be presented in their home jurisdictions to avoid taxation there as well.
“It is a legal fiction so absurd that it borders on fraud,” the lawyer contends.
In his column published by this newspaper, he told readers, “Every other taxpayer in Guyana is subject to withholding or remittance taxes on profits transferred abroad, including deemed branch profits remitted to overseas parents. Exxon, Hess and CNOOC are exempt under the 2016 Petroleum Agreement. Put a number to it. Had withholding taxes applied to the actual and deemed remittances, Guyana would have collected approximately GY$409 billion.”
The sweetheart deal the Co-Venturers signed in 2016 with the GoG 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 these companies indicating that it has met the local tax requirements to avoid the burden of double taxation.
Losing more than its gaining?
When the 2025 taxes waived for Hess was compared to the royalties paid into the NRF that year, it shows Guyana lost more revenue than it collected.
According to the Bank of Guyana, fourth quarter 2025 NRF Report, a total of US$330,672,634 was paid in royalty that year. This means Guyana’s total royalty was three times less than the taxes it waived to Hess that year.
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