ExxonMobil Guyana’s Vice President and Chief Financial Officer, John A. Colling, has rejected recent claims in the local media that the Stabroek Block Contractor Group manipulates accounting standards to inflate its financial results.
In a letter published in the Stabroek News on July 2, Colling stated, “The accusation that we manipulate accounting standards to improve our financial results is unfounded and defamatory.”
He said ExxonMobil Guyana’s annual financial statements are prepared in line with International Financial Reporting Standards (IFRS). He noted, “Our financial statements are subject to thorough, independent audits to ensure accuracy and compliance.”
Revenues and expenses, he explained, are recorded per IFRS, with capital costs depreciated over time. Colling added that the company files its financial statements with the Deeds Registrar as required by Guyana’s laws. He clarified that the Petroleum Agreement (PA) governs investment tracking, cost recovery, and profit sharing. He said the Contractor Group has invested over US$40 billion to develop Guyana’s oil resources.
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“Expenses and capital costs are recorded when incurred and recovered up to a maximum of 75% of gross revenues from the sale of hydrocarbons each month, as prescribed by the agreement,” he wrote.
He said the remaining revenue, after cost recovery, is shared equally between the Contractor Group and the Government of Guyana. Additionally, the Government receives a 2% royalty on gross revenues from all volumes sold. Colling noted that this royalty is paid from the Contractor Group’s profit share.
He added, “The Government audits cost recovery separately, in addition to the independent audits of our IFRS statements.” He said some recent media reports have incorrectly compared IFRS accounting profits to PA profit share and royalty payments.
“This is entirely misleading,” he stressed.
He explained that revenue recognition and capital cost treatment differ between the IFRS and the PA frameworks.
Colling concluded, “The PA is achieving its purpose: enabling the development of Guyana’s oil sector while ensuring the country benefits through royalties and profit sharing without bearing the financial risks of investment.”
He said ExxonMobil Guyana remains committed to transparency and “welcomes open, fact-based discussions on these matters.”
