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Guyana paid over $500B in taxes for Exxon and partners in 2024
EMGL President, Alistair Routledge
Kaieteur News – Despite the billions in profits recorded by the oil companies operating in Guyana’s Stabroek Block, the country continues to shoulder their tax burden. In 2024 alone, the government paid over $500 billion in income taxes on behalf of ExxonMobil Guyana Limited and its partners Hess and CNOOC, under the terms of the 2016 Production Sharing Agreement (PSA) governing the Stabroek Block operation.
ExxonMobil Guyana is the operator of the Stabroek Block with a 45 percent interest, while Hess Guyana holds 30 percent and CNOOC Petroleum Guyana Limited holds 25 percent.
According to the oil companies’ financial statements for 2024, Guyana had to pay $260 billion in taxes for Exxon, $219.3 billion in taxes for Hess, and $23 billion for CNOOC a total of $502 billion.
CEO of Hess Corporation, John Hess
For 2024 EMGL recorded an operating profit before taxation of $1.255 trillion. The company reported a tax expense of $260 billion and a total comprehensive income of $995.1 billion. Hess’ $219.33 billion in taxes for 2024 is an increase from the $131.56 billion in 2023. For that same year, Hess Guyana recorded a staggering $840 billion in profits. CNOOC reported US$2.5 billion in profit for 2024. CNOOC’s 2023 tax expense was $37 billion and in 2024 it dropped to $23 billion.
President of CNOOC Petroleum Guyana Limited, Lian Jihong
According to the PSA, the Stabroek Block partners are allowed to recover 75 percent of the oil produced to recover their investment costs; the remaining 25 percent is considered profit, which is split between Guyana and the Stabroek Block consortium, giving each 12.5 percent. However, the consortium pays a 2 percent royalty from its share to Guyana. From its 14.5 percent, Guyana then has to pay taxes for the oil companies.
Article 15.4 of the Petroleum Agreement states that the sum equivalent to the taxes owed by the company will be paid by the minister responsible for petroleum to the Commissioner General of the Guyana Revenue Authority (GRA). The contract also allows for the issuing of a receipt to ExxonMobil, indicating that it has met the local tax requirements to avoid the burden of double taxation. Article 15.5 of the contract states, “Within one hundred and eighty (180) days following the end of each year of assessment, the minister shall furnish to contractor proper tax certificates in contractor’s name from the Commissioner General, Guyana Revenue Authority evidencing the payment of the contractor’s income tax under the Income Tax Act and corporation tax under the Corporation Tax Act. Such certificates shall state the amount of tax paid individually on behalf of contractor or parties comprising the contractor and other particulars customary for such certificates.”
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- 2016 Production Sharing Agreement, Alistair Routledge, CNOOC, ExxonMobil, Hess, John Hess, Lian Jihong, Stabroek Block, tax
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Why can’t I get an investigation? Chevron( wanting to buy Hess) sent me a check for $533,800 and w2 saying I cashed it. I didn’t in hopes of finally getting an investigation by FBI, DOJ, IRS, FTC SEC investigation? Nothing. These oil companies need investigated.