Update on Status of Stabroek Block Cost Recovery and Verification of Profit Oil Audits

The Ministry of Natural Resources wishes to provide the public with an update on the status of three audits of Stabroek Block expenses. These audits were contracted by the Government of Guyana as part of its cost recovery verification process, which is provided for under the Petroleum Agreement with the Stabroek Block co-venturers — ExxonMobil, Hess, and CNOOC.

The first audit, covering the period 1999 to 2017, was conducted by IHS Markit. The Government, in keeping with its findings, has disputed approximately US$214 million in costs submitted by the co-venturers. This was communicated to ExxonMobil and its partners, and both Government and the co-venturers have agreed to activate the provision for a sole expert, as enshrined in the Production Sharing Agreement. The Government has submitted multiple nominees for the sole expert. The sole expert is an established dispute resolution mechanism, which can resolve disagreements over the cost recovery claims. ExxonMobil, acting on behalf of the co-venturers, has until May 31, 2025, to provide its response.

The second audit, which examined costs incurred between 2018 and 2020, reviewed US$7.2 billion in declared expenses. Of this amount, US$65.1 million was not accepted by the Government. This was communicated to the co-venturers and they have since provided updated submissions, which are under review by the Government.

As previously reported, both of the final reports for the first and second audits are available on the website of the Petroleum Management Programme via this link: http://petroleum.gov.gy/

The third audit, covering the period 2021 to 2023, was completed and submitted to the Government. The Guyana Revenue Authority (GRA), which plays a key role in the Government's efforts on the three audits, is reviewing the initial report.

The Ministry of Natural Resources reaffirms its commitment to the prudent management of Guyana’s oil and gas sector and will continue to keep the public informed of its work in this regard.

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