Oil audits will be completed assured VP Jagdeo

Vice President, Dr. Bharrat Jagdeo assured the government will complete the audits of costs
claimed by ExxonMobil for its operations. He noted too that Guyana’s interests will be
protected.
Dr Jagdeo uttered these comments on Wednesday in response to concerns that the accounting
provisions in ExxonMobil’s Stabroek block contract stipulate a two-year deadline, and would
prevent the government from recovering inflated or unreasonable costs.
Jagdeo went on to dismissed criticisms from the political opposition on this matter as self-
serving. He said that this is given that government has been transparent about why it has not yet
contracted an auditor.“We have made it clear what our intention is, to have local people
involved,” Jagdeo was quoted as saying.
The VP declared that government is seeking to assemble a group of Guyanese in the sector who
demonstrate strong auditing capabilities in this area, and would be able to collaborate with a
reputable international firm for the audit of ExxonMobil’s post-2017 costs. He admitted that
Government has recognised that it is important for a local firm to participate in this audit, in its
public calls for expressions of interest.
The VP noted that government recognises that strong local content achievement is important to
the Guyanese people, and its efforts to gather capable local auditors would give effect to that in a
practical way. He said that it will also allow them access to considerable revenues from audit
fees. The former President stressed that when the PPP/C Government assumed office in 2020, it
took over the shepherding of an audit of ExxonMobil’s pre-contract and other pre-2017 costs.
This audit, he said, was being conducted by the UK firm, IHS Markit, which was hired by the
previous administration four years after oil was first discovered offshore.
Jagdeo pointed out that that cost recovery audits were left outstanding for years. He expressed
disappointment that Guyana, under the previous administration, did not develop its capacity to
conduct cost recovery audits, nor did it make haste to contract a firm to conduct those audits. The
VP noted that along with setting the stage for local audit firms to benefit from involvement in
cost recovery audits, the government will also build the capacity of the Guyana Revenue
Authority (GRA) to conduct its own cost audits for the oil sector.
Dr. Jagdeo declared his intention to addressing the issue more comprehensively in a future
engagement.