GUYANA-Natural Resources Minister supports GRA’s position on audit

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GEORGETOWN, Guyana, Sept 15, CMC – Natural Resources Minister, Vickram Bharrat, says he supports the position that the Guyana Revenue Authority (GRA) is the competent authority to lead all audits for expenses incurred by ExxonMobil Guyana Limited and other oil companies operating here.

GEORGETOWN, Guyana, CMC – Natural Resources Minister, Vickram Bharrat, says he supports the position that the Guyana Revenue Authority (GRA) is the competent authority to lead all audits for expenses incurred by ExxonMobil Guyana Limited and other oil companies operating here.

In a brief statement, Bharrat said he stands by the GRA’s no-objection to the US$214 million in disputed costs flagged by the British-based IHS Markit in its audit of ExxonMobil’s US$1.7 billion in expenses incurred for the period 1999 to 2017.

“The Ministry’s Petroleum Unit, which is assisting in the audit process had engaged in an unauthorized examination of documents submitted by Exxon,” according to the statement issued by the Ministry of Natural Resources.

It said that both Vice President Bharrat Jagdeo and Bharrat “were under the impression that the information submitted to them on subsequent reductions emanated from the GRA which is not the case.

“The Minister wishes to state emphatically that upon learning of this development, corrective action was taken immediately and staff was instructed to cease such engagements and deliberations,” the statement said.

Last month, Jagdeo told a news conference that the adequacy of documentation had led to the recent impasse between ExxonMobil and the government.

Jagdeo said that initial findings of over US$200 million lacking sufficient validation were eventually narrowed down to US$11 million after supplementary documentation was submitted.

The Ministry of Natural Resources had then indicated it was working with the GRA to expedite the closure of this matter, as well as a second audit, which concerns more than seven billion US dollars in 2018-2020 expenses.

“The lessons learned from these processes will be adopted and applied for the 2021 to 2022 audit of the Stabroek Blick and other offshore operations of the Guyana Basin,” the Ministry stated.

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