Latest update April 12th, 2026 12:50 AM
Skullduggeries unearthed in second audit, should have been finalised 231 days ago – Stabroek Block PSA
Kaieteur News – The misuse of Guyana’s oil profits flagged in the second audit report by VHE Consulting, should have already been finalised between the Government of Guyana and the operator of the Stabroek Block, ExxonMobil 231 days ago.
This is according to the provisions of the 2016 Petroleum Agreement that governs the unusually large oil block, measuring 26,800 square kilometers. On April 13, 2023 during a press conference at Freedom House, Georgetown, Vice President Bharrat Jagdeo told reporters that government received the final report of the US$7.3B audit of the company’s expenses, relative to the period 2018 to 2020.
Annex ‘C’ of the contract outlines the procedures relative to the completion of cost oil audits. Based on the agreement, Guyana can conduct an audit within two years from the end of each calendar year. At the conclusion of the process, the Contractor must be furnished with the report and its findings within 60 days to provide a response. The response from Exxon will detail its objection or acceptance of the audit claim, along with explanations thereof. The contract also allows the subject Minister to conduct further investigations within 60 days of receiving the Contractor’s response.
It must be noted that the PSA makes it clear at Section 1.5 (b) that: “…If within sixty (60) days of the Minister’s further investigation, the Parties are unable to agree to the disposition of the Minister’s audit claim, the claim shall be submitted to the sole expert in accordance with Article 26 of the Agreement.” Article 26 of the contract sets out the conditions as it relates to arbitration.
This means that the PSA has allocated 180 days to complete the review of the audit report. Today however marks a total of 411 days since Jagdeo revealed that the report was received. Consequently, a final decision regarding the way forward on the sums flagged should have been made at least 231 days ago. During his most recent engagement with the media however, Jagdeo said the government was still working assiduously to close the first audit for the period 1999 to 2017. That review was conducted by a British firm, IHS-Markit.
He said, “We need to close the first audit…you need to formally say, so I have to find out if that was done and it should have been done because that was like about three weeks ago, that they had to write and say we had a difference of opinion over US$214M. So that letter, closing it with Exxon, so there is no room for negotiation anymore.” Meanwhile, on the second audit, Jagdeo revealed that the GoG and Exxon are still in talks with the operator on the costs flagged by the report. According to him, “They still are in a back (and forth); they still have been writing Exxon and awaiting response on a lot of the issues that you have serialized in the Kaieteur News.”
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