The Ministry of Natural Resources in Guyana has instructed the country's tax agency to engage in dispute resolution with Exxon Mobil regarding the recovery of around $214 million in expenses reported by the U.S. oil giant. These expenses, recorded as part of operations in the vast Stabroek offshore block, are under scrutiny due to the agreement allowing the consortium, led by Exxon Mobil, to claim and export 75% of produced crude as "cost oil," with the remaining half due to Guyana's government.
Following contractual procedures, the government has utilized external consultancy firms to audit the expenses to verify their accuracy. A recent audit by U.S.-based consultancy IHS Markit from 1999-2017 prompted the Ministry to act on adjusting the cost estimate by $214.4 million, with the Guyana Revenue Authority supporting this recommendation.
Exxon Mobil has yet to comment on the matter. As of January, the Exxon-led consortium had allocated $33.9 billion out of $41.1 billion spent in the area, as stated by Guyana's Vice President, Bharrat Jagdeo. Another audit, managed by VHE Consulting, is currently ongoing to review expenses from 2018 to 2020, with Exxon Mobil having responded to initial findings for further assessment by VHE Consulting.