ExxonMobil’s business practices in Guyana have come under scrutiny after the first audit of oil expenses found US$214m in questionable claims by Exxon and its partners. The audit, which covers costs incurred between 1999 and 2017, reveals that a staggering 12.8% of the US$1.67bn expenses claimed could be disputed by the Guyana government as they were either not allowable or lacked sufficient documentation. Despite the report being completed in March 2021, the PPP/C government has kept it hidden from the public, raising concerns about transparency. Among the audit’s revelations is that ExxonMobil’s subsidiary in Guyana, Esso Exploration and Production Guyana Limited (EEPGL), has not kept the government adequately apprised of the activities and costs associated with the development. These unjust claims would effectively reduce the amount of profit oil available to Guyana.
The audit report shows that the company and its partners have submitted claims that are not allowable or lack sufficient documentation, which raises serious concerns about transparency and ethical conduct. It is unacceptable that the Guyana government has kept this report hidden for two years, failing to take action to challenge the questionable claims made by Exxon and its partners. Furthermore, it is alleged that ExxonMobil’s subsidiary in Guyana, EEPGL, has not kept the government adequately informed about the activities and costs associated with the development. This lack of transparency is particularly concerning given the huge amount of profit oil at stake. The unjust claims made by Exxon and its partners will have a significant impact on the amount of profit oil available to Guyana, which could harm the country’s economic development.
The citizens of Guyana yearn for better schools, hospitals, local roads, potable water, reliable electricity and internet access, all services which could easily be provided for if Guyana were to earn their fair share of oil revenues. The audit report should serve as a wake-up call for the Guyana government to take action against Exxon and its partners. The government has a responsibility to ensure that companies operating in its territory adhere to ethical business practices and operate transparently. The fact that the government of Guyana has failed to take action against ExxonMobil and its partners is unacceptable, and it must act immediately to address these issues. The audit report on ExxonMobil’s business practices in Guyana is a damning indictment of the company and its partners. ExxonMobil must also take responsibility for its actions and demonstrate that it is committed to operating ethically and transparently in Guyana.
