Going to arbitration would be the “last resort” for ExxonMobil Guyana Limited (EMGL) to resolve the 1999-2017 audit of its Stabroek Block expenses. This is according to EMGL’s President, Alistair Routledge.
The process remains without closure as Exxon is still providing documentation to support the flagged US$214 million out of the US$1.6 billion cost bank.
Exxon, according to Routledge at an October 17 press conference, expects a favorable outcome.
“Our distinct desire is not to go to arbitration because we all should be clear about what rules are. That would be the last resort if we arrive at arbitration,” he said.
Controversy surrounds the audit, as the US$214 million figure was ultimately reduced to US$3 million after Exxon and the Ministry of Natural Resources Petroleum Unit engaged in discussions.
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Routledge explained that under the Stabroek block agreement, the Ministry was the official “contact point”. The government has clarified that the GRA is the only body that can make such a determination. The ExxonMobil official also made it clear that the company did not have any formal agreement from the ministry.
“We now know the GRA is the body and they wrote a letter last week clarifying and asking that we provide them with the documentation,” he explained.
The EMGL President expressed confidence in the company’s ability to account for around 90% of the US$214 million.
Exxon, in a prior statement, reiterated its commitment to cooperating with the government and its appointed consultants. The company stated that it acted in good faith throughout the cost recovery audit for the years 1999-2017.
