For ExxonMobil, arbitration would be the “last resort” to resolve the findings of the IHS Market audit of its 1997-2017 Stabroek Block expenses.
“I don’t have any intent to call an arbitration. I don’t think that that’s the right way to get to resolution,” said Alistair Routledge, President of ExxonMobil Guyana at an Oct. 9 press conference in Georgetown.
The Guyana Revenue Authority (GRA), entrusted with managing an audit of Exxon’s expenses, had concurred with the findings of IHS Markit, the firm hired to audit Exxon’s claimed 1999-2017 expenses. Specifically, out of US$1.7 billion in Stabroek Block expenses, IHS Markit and GRA determined that US$214 million were disputed.
This situation escalated when the Ministry of Natural Resources’ Petroleum Unit reduced the disputed amount to US$11 million, after having direct talks with Exxon. The Ministry had acknowledged that it made an “unauthorised examination of documents submitted by Exxon.”
The process remains without closure. Exxon is still in discussions with GRA.
Routledge explained that arbitration is “quite [an] expensive” process.
“Ultimately, the next logical step would be to involve an independent expert, if we can’t resolve it that way, there is the provision for arbitration,” he added.
Exxon, in a 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.
