The cost of a horrible oil deal! Guyana gave away oil companies US$2.4B taxes in 2025 now borrowing US$2.6B for 2026 budget

Jun 14, 2026 News

(Kaieteur News) – ExxonMobil, Hess and CNOOC in 2025 walked out of Guyana without paying a cent in taxes to the Guyana Revenue Authority (GRA), resulting in a massive US$2.4B in revenue loss to the country.

This is according to the 2025 financials of the Stabroek Block partners reviewed by Kaieteur News. The financial statements for ExxonMobil Guyana Limited (EMGL), the 45% stakeholder in the block reported that its income taxes for the year was GY$231,590,958,984.

Similarly, the financials for Hess Guyana Exploration Limited, the 30% shareholder, indicated GY$201,816,135,193 as its income tax expense.

The cost of a horrible oil deal! Guyana gave away oil companies US$2.4B taxes in 2025 now borrowing US$2.6B for 2026 budget

ExxonMobil Headquarters at Ogle, East Coast Demerara

Meanwhile, CNOOC Petroleum Guyana Limited, the 25% partner in Stabroek reported an income tax expense of GY$40,265,000,000 for 2025.

This means that the companies together enjoyed GY$473,672,094,177 in unpaid taxes or about US$2.4B.

Significantly, the unpaid taxes to the government of Guyana (GoG) are almost equivalent to the country’s oil earnings for that exact year, which reached about US$2.5B. This means that if Exxon, Hess and CNOOC had paid their fair share of taxes, the country could have instead received US$4.9B in oil revenue in 2025.

Notably, the 2016 Production Sharing Agreement (PSA) 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.

It was reported that the People’s Progressive Party (PPP) gave its support for the tax waivers in the National Assembly, although it had not seen the terms of the agreement.

The unanimous support of the tax holidays granted by Guyanese politicians was first exposed by former Natural Resources Minister, Raphael Trotman in his book ‘From Destiny to Prosperity’.

Giving away taxes and borrowing

The country willingly gave up US$2.4B in taxes last year but was forced to borrow US$2.6B to fund this year’s $1.558 trillion Budget. These loans will push Guyana’s national debt from US$7.7B at the end of 2025 to a startling US$10.3B by the end of 2026.

Although government has strongly defended its borrowing, stakeholders have warned the GoG against incurring more debt against projected revenue flow from the petroleum sector, given the volatility of oil prices.

Guyanese have protested against the unconscionable tax waivers being extended to the oil companies that make billions in profits here while Guyanese citizens and businesses are forced to make payments to the GRA or suffer the full brunt of the laws.

Citizens have often argued that while incentives were offered and extended in the “early days” to attract investments in the block, this massive revenue drain should not be allowed to continue indefinitely.

Exxon on the other hand believes that a “stable environment” is crucial to not only its operations, but to other investors as well.

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borrowing, budget, CNOOC, ExxonMobil, Guyana oil contract, Hess, oil deal, Oil Taxes, Stabroek Block

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