Rogue elements that attempted to reduce Exxon’s questionable US$214M expenses to US$3M must be exposed and fired – Shadow Oil Minister

Sep 19, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – Shadow Minister for the Oil and Gas Sector, David Patterson is calling for “the rogue elements” within the Petroleum Unit of the Ministry of Natural Resources to be exposed and fired for causing the nation, “utter embarrassment” in the audit of ExxonMobil’s expenses in the Stabroek Block.

The matter raised by Patterson was brought to light last week by Vice President, Dr. Bharrat Jagdeo. The chief policymaker for the oil industry had exposed that the ministry was engaged in deliberations with Exxon that saw over US$214M in questionable expenses being slashed to US$11M and then to US$3M. The US$214M figure was flagged by British Consultancy Group, IHS Markit, in a report it produced after being hired back in 2019 to audit US$1.7B in expenses Exxon incurred from 1999 to 2017. That US$214M in questionable spending was also endorsed by the Guyana Revenue Authority (GRA) which had recommended to the Ministry of Natural Resources for the audit to proceed to closure.

Shadow Oil and Gas Minister, David Patterson

Despite this recommendation, Dr. Jagdeo said he discovered that the ministry still entertained Exxon in a breakdown of costs, adding that this should not have occurred. Natural Resources Minister, Vickram Bharrat also disclosed via a statement that he supports the VP’s position. Bharrat said he played no part in those discussions with Exxon but it was his staff at the unit that engaged in “unauthorized” discussions and an examination of documents sent by Exxon.

Like the Vice President, Bharrat said he was of the opinion that the reduction in questionable costs, subsequently channeled to him and the Vice President, was emanating from GRA. Bharrat said corrective action has since been taken and his staff has been told to cease such discussions.

Contacted for an update on the matter yesterday, Bharrat said no one has been fired. He also declined to name the persons who were engaged in “unauthorized” discussions with Exxon. “We are diligently reviewing this matter and we are in the process of taking action to ensure there is no reoccurrence,” the minister said.

Natural Resources Minister, Vickram Bharrat

Since the disclosure on the mishandling of the audit process, Patterson and other stakeholders have been calling for “heads to roll.” Patterson in particular believes the full truth about the matter is not being told to the public and is now challenging the government to name those persons who were part of the “unauthorized” discussions with Exxon. “It is the least Jagdeo and Minister Bharrat can do, unless they want citizens to think that they are protecting those who contaminated this process,” Patterson said.

The politician further noted that he finds it difficult to conceive that an entire department would risk their livelihood by engaging in unapproved negotiations with ExxonMobil to reduce questionable sums. He said such a move could have cost the country over US$100M that is now owed to it.

Vice President, Dr. Bharrat Jagdeo

“I spoke with ExxonMobil (Guyana Limited’s Head, Alistair Routledge) and he told me that there were several discussions; it was a back and forth. So for that to be happening in the ministry and Vickram didn’t know is fishy. You are telling me the minister was not copied in any of the correspondence between his ministry and Exxon? That is not only incredible but unbelievable,” Patterson said.

The Shadow Minister for the sector said Guyanese deserve to know which persons within the ministry unit has engaged in such unethical discussions and if those discussions were initiated by Exxon. Patterson also expressed worry about the implications of the ministry’s actions. He reasoned that Exxon could very well use the ministry’s acceptance of over US$211M in expenses to weaken the country’s position during arbitration. “Government should say how it plans to deal with this…heads should roll for this national embarrassment…Government has a duty to this nation to expose and sanction the rogue elements, the world is watching,” Patterson concluded.

• David Patterson, Dr. Bharrat Jagdeo, expenses, Oil and Gas Sector, Vice President