PRESS STATEMENT

Kingston, Georgetown, Guyana (March 06, 2025) - The Ministry of Natural Resources (MNR) notes a Stabroek News article titled "Still no word from gov't on $$ owed by Exxon after IHS audit", published on Sunday, March 2, 2025. In the piece, concerns were raised regarding the status of the Stabroek Block cost recovery audits for the period 1999 to 2017 which were conducted by IHS Markit (IHS). Additionally, the audit for 2018 to 2020, conducted by VHE Consulting (VHE), was called into question.

The ministry recognises the critical role that the media plays in advancing transparency and public understanding. Considering this, the agency wishes to provide additional context and clarity to the matters outlined therein:

With respect to the 1999 to 2017 audit by IHS, the Guyana Revenue Authority (GRA) provided to the ministry a "no objection" to IHS’ recommendation to adjust the cost bank by US$214,411,994.

This position remains unchanged and clear, and EXXON was so advised.

Section 1.5(b) of Annex C to the 2016 Stabroek Block Petroleum Agreement allows for the submission of disputes concerning the audit to expert determination within sixty days of being informed of the final position. After being advised by letter of September 25, 2024 by the MNR, ExxonMobil Guyana Limited (EMGL) on November 15, 2024, wrote to the Honourable Minister, Vickram Bharat, seeking an extension to May 15, 2025.

In its capacity as delegated pursuant to Article 6 of the 2016 Stabroek Block Agreement, the GRA furnished a response dated December 11, 2024 to MNR regarding this request, outlining the process required prior to the engagement of a Sole Expert and recommended that to afford due process that an extension be granted to January 25, 2025, given the provision of the additional schedules that were not previously provided.

The GRA has now been advised by the MNR to take the next step that is required, and will initiate the same immediately in keeping with the terms of the PSA.

Regarding the audit conducted by VHE from 2018 to 2020, EMGL responded to the audit findings. VHE is responsible for reviewing this response as part of its contractual obligations. This process is still ongoing with VHE.

Moreover, we again remind all stakeholders that disclosing information and engaging in public discussions on ongoing audits before their conclusion is premature and could cause harm if the information is inaccurate or incomplete. In several instances, the MNR has publicly reiterated that the reports will be available publicly once the ongoing audits are concluded.

The MNR anticipates that the information provided will assist in elucidating the concerns and issues raised in the article, thereby enhancing the transparency of the matter at hand.

END