Latest update April 14th, 2026 12:38 AM
Auditors expose ExxonMobil’s recovery of US$MILLIONS in VAT from Stabroek Block account instead of awaiting GRA refunds
Kaieteur News – The second audit report on ExxonMobil Guyana’s expenses has exposed numerous ways the oil giant is taking advantage of the profits being made from the oil producing projects in the Stabroek Block.
ExxonMobil Guyana Limited President, Alistair Routledge
In the report drafted by a local consortium, Ramdihal & Haynes Inc., Eclisar Financial, and Vitality Accounting & Consultancy Inc. and bolstered by the international support of SGS and Martindale Consultants, auditors found that Exxon recovered US$ 3,574,393 as 14% Value Added Tax (VAT) assessed on various third-party invoices.
Auditors were shocked after making this discovery as they noted that Exxon, according to its Stabroek Block Production Sharing Agreement (PSA), is exempt from VAT. In light of that exemption, auditors said VAT should never appear on Exxon’s cost recovery statements.
Auditors pointed out that Article 15.1 of the Stabroek Block PSA deals with “Taxation and Royalty.” That section specifically states that Exxon “IS NOT SUBJECT TO VAT.” In fact, Article 15 goes further to state that no tax, value-added tax, excise tax, duty, fee, charge or other impost shall be levied on Exxon or even its affiliated companies in respect of income derived from petroleum operations or in respect of any property held, transactions undertaken or activities.
Auditors said Exxon acknowledged it is exempt from VAT, but still said that it nonetheless pays VAT when included on vendor invoices and therefore charges VAT to the cost recovery statement.
Exxon advised that the Guyana Revenue Authority (GRA) has not yet issued exemption letters for all vendors, so it must pay VAT as invoiced until it receives vendor-specific letters which will then allow the vendor to cease assessing VAT. Exxon also said it identifies VAT paid each quarter in these instances and moves the VAT amounts into a “VAT Account” for tracking purposes. Exxon said it then submits a monthly refund request to the GRA, which Exxon advised, typically takes six-to-12 months to receive. Exxon said VAT refunds are credited to the Stabroek Block account when received.
Auditors however noted that such a practice is not in keeping with the requirements of the Stabroek Block Petroleum Agreement. Auditors acknowledged that there are a number of arguments Exxon could proffer in an attempt to justify recovering VAT until it is refunded by GRA.
Be that as it may, auditors stressed the fact that Exxon is exempt from VAT and as such, VAT should never appear as an item on its Cost Recovery Statements. Auditors said Exxon eventually agreed to remove the VAT from the Cost Recovery Statement. In addition to crediting the Stabroek Block account with US$ 3,574,393, auditors said Exxon was requested to cease including any future VAT amounts against the Stabroek Block while awaiting refunds from GRA.
Kaieteur News understands that report which examines approximately US$7.2B in expenses incurred from 2018 to 2020 remains under review by the relevant authorities.
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- Alistair Routledge, consortium, Eclisar Financial, ExxonMobil Guyana Limited President, Ramdihal & Haynes Inc.
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