Guyana’s Minister of Natural Resources, Vickram Bharrat, said in a statement on Thursday evening that he was under the impression the Guyana Revenue Authority (GRA) was part of a process that resulted in a drastic reduction in a claim related to ExxonMobil Guyana’s Stabroek Block Cost Recovery Audit for the 1999 – 2017 period.
The disputed sum of US$214,911,994 relating to the audit of Exxon’s expenses was ultimately reduced to US$3,414,853.68 after the company and the Ministry’s Petroleum Unit engaged in discussions.
The Petroleum Unit is headed by Mr. Gopnauth ‘Bobby’ Gossai, Senior Petroleum Coordinator at the Ministry.
Mr. Bharrat said the Ministry’s role was to oversee the process of conducting the audit as per the Production Sharing Agreement, as well as to facilitate the exchange of information and documentation among the relevant parties, including the GRA.
“However, based on advice from Mr. Gopnauth Gossai that the initial claim of US$214,911,994 was reduced to US$3,414,853.68, I wrote the Guyana Revenue Authority on 28th November 2022 to confirm this figure by seeking a “No Objection”,” Mr. Bharrat said.
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He pointed out that as recent as July 2023, “Mr. Gossai in a meeting with Vice President, Bharrat Jagdeo and I, reported that the initial sum was reduced to USD$11,497,140 then further down to USD$3,414,853.68.”
He said, given that he had written the GRA since November 2022 and it was established that the GRA’s involvement is necessary to finalise the audit, “I was under the impression that the reduce[d] figure was done in collaboration with the GRA.”
Mr. Bharrat said he subsequently learned that the GRA did not agree with the position and the initial claim of US$214,911,994 remained the same.
Echoing comments repeatedly made by Jagdeo in recent weeks, the natural resources minister said the government’s position is that the only authority to make a final determination is the GRA.
“Therefore, after examining all the facts it is clear that Mr. Gossai acted without the requisite authorisation to engage EEPGL [ExxonMobil Guyana] and provided inadequate advice and as such, I have asked the Permanent Secretary to take the necessary disciplinary measures,” Mr. Bharrat said.
He added that systems will be established to ensure no repetition of this lapse occurs in the future.
“Also, staff members will be advised to make full disclosure with all contact and sharing of information with stakeholders in the sector,” Mr. Bharrat indicated.
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.
