ExxonMobil Guyana says no American taxpayer money is financing its operations in the South American country. President, Alistair Routledge, said the company’s offshore work is entirely funded by its own cash reserves.
“All of the financing of the business here is coming from equity finance,” Routledge stated during an appearance on Starting Point – The Oil and Gas edition podcast. “ExxonMobil has some reserves of cash that are being used to finance the business here.”
Routledge once again dismissed suggestions that U.S. taxpayers might be indirectly funding ExxonMobil’s Guyana projects. “It is certainly not true,” he said. “The difference between book accounting and cash flow is important. Most businesses, all businesses, are clear, cash is king.”
Routledge explained that ExxonMobil has not used any Guyana tax credits in its U.S. filings for 2023 or 2024. “That is by choice. We have not exercised that choice to use any Guyana tax credits in our U.S. filings.”
Three U.S. Senators had expressed concern that American taxpayers may be indirectly subsidizing ExxonMobil’s operations in Guyana. Their inquiry follows claims by the Oil and Gas Governance Network (OGGN) that Exxon incorrectly reported paying over US$1.2 billion in taxes to the Guyana Revenue Authority. The Senators questioned whether the company is using these payments to claim U.S. foreign tax credits, even as Guyana’s government covers Exxon’s income taxes under the Production Sharing Agreement, an arrangement they suggested could be viewed as a government benefit, potentially affecting Exxon’s eligibility for such credits.
Routledge also noted that ExxonMobil remains in a negative cash position as it continues to invest heavily in developing Guyana’s offshore oil fields. “The capital that we have invested in the country and the ongoing operating costs have been funded by ExxonMobil itself,” he explained. “Although we have been receiving some profit oil, it has yet to fully pay back all those costs because we continue to invest in the country.”
According to Routledge, the company’s cumulative investment still exceeds returns by roughly US$5 billion. “We remain in a hugely important business, and it will be a very profitable business on cash flow as well as on a book accounting basis. Cash is king. We are yet to get to the point where we break even on a given cash basis.”
ExxonMobil operates Guyana’s offshore Stabroek Block with co-venturers Hess (acquired by Chevron) and CNOOC, developing one of the world’s fastest-growing oil provinces.
