Jagdeo says Guyana not losing a cent based on Exxon audit, agrees process taking too long

Vice President Dr. Bharrat Jagdeo said that Guyana is not going to lose a cent in the audit of ExxonMobil’s 1999-2017 Stabroek Block costs – the first such review to verify Exxon’s cost claims. 

His comments were made during a press conference in his capacity as General Secretary of the People’s Progressive Party Civic (PPP/C). The political parties are preparing for Local Government Elections in July, and oil sector cost recovery audits have constituted a hot-button issue. One Guyanese daily newspaper, Stabroek News, recently published information from a leaked interim report on the audit, which indicated that the validity of some US$214 million of the US$1.67 billion in costs examined, were in question. 

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Dr. Jagdeo noted that out of the US$214 million identified by consultant IHS Markit, only US$34 million was identified for removal.

“That is what the audit said has to be removed from the cost bank into the profit share of oil,” Jagdeo said.

He added that US$179.8 million could not be validated due to inadequate supporting documents. 

“So, they’re waiting for additional documents from Exxon to support that expenditure,” he explained. “So if they can’t, then that goes into cost oil, but if they can substantiate it with additional supporting documents, then it doesn’t get removed.” 

Finally, Jagdeo noted that US$270,000 of the costs are subject to ministerial approval. 

Dr. Jagdeo agreed with assertions that the audit is taking too long to conclude, given that it was first contracted since late 2019, early 2020. But he said it was not secretive, as it was under scrutiny by over a dozen technical officials from the Guyana Revenue Authority (GRA). He argued that interim reports of such nature should not be released to the public, as reponses are still to be submitted by the Stabroek Block co-venturers. 

Commissioner General of the Guyana Revenue Authority (GRA), Godfrey Statia, said when the matter is concluded, the findings will be made public.