The Oil and Gas Governance Network Guyana (OGGN) has previously raised critical concerns regarding the tax practices associated with the oil extraction operations of ExxonMobil and its partners – Hess Corporation and China National Offshore Oil Company (CNOOC) – in Guyana, as specified in the 2016 Petroleum Agreement, better known as the 2016 Production Sharing Agreement (PSA). Our first letter (Stabroek News, February 16, 2025) made the case that ExxonMobil may be utilizing tax certificates issued by the Guyana Revenue Authority (GRA) to claim Foreign Tax Credits (FTCs) from the U.S. Internal Revenue Service, potentially depriving the U.S. Treasury of billions of dollars in tax revenue, while our second letter (Stabroek News, February 23, 2025) sought clarification from Commissioner-General Mr. Godfrey Statia on whether the GRA has received tax payments from the Minister of Natural Resources. Despite the gravity of this issue, no official confirmation has been provided to date. We are now asking for a direct statement from the Minister of Natural Resources to confirm that he has paid these taxes as mandated by the 2016 PSA.
Article 15.4 of the 2016 PSA states that the Minister of Natural Resources is responsible for remitting these tax payments to the Guyana Revenue Authority (GRA), and Article 15.5 mandates that corresponding tax certificates be issued. ExxonMobil and its affiliates have reported obtaining such certificates, amounting to approximately USD 2.8 billion for 2020 to 2023. However, no public record exists to confirm that these payments have actually been made, leaving unanswered critical questions about Guyana’s fiscal transparency.
To clarify these matters, OGGN formally requests that Honourable Vickram Bharrat, Minister of Natural Resources, publicly confirm and provide verifiable evidence of the following:
That the Minister of Natural Resources has paid the required corporate income taxes on behalf of ExxonMobil and its partners for the years 2020, 2021, 2022, and 2023, as stipulated in Article 15.4 of the 2016 Production Sharing Agreement;
That these taxes have been paid, and from which fund or government budget allocation were these taxes drawn; and
That the Guyana Revenue Agency issued tax certificates for these payments, and to whom were the tax certificates issued, and on what dates. Furthermore,
What is the total sum of tax payments made from Guyana’s share of oil revenues to cover ExxonMobil and its partners’ obligations?
When did these payments undergo independent audit and verification, and where is the public documentation confirming audit?
Transparency in the management of Guyana’s natural resources is paramount. The citizens of Guyana have a right under the National Constitution, Articles 13 and 146(1), to clear and factual answers regarding the financial arrangements governing their nation’s most valuable asset—its oil wealth. We call upon the Minister of Natural Resources to uphold the principles of good governance and fiscal accountability by publicly addressing these concerns.
Sincerely,
Andre Brandli
Alfred Bhulai
Janette Bulkan
Kenrick Hunte
Darshanand Khusial
Joe Persaud
for the Oil & Gas Governance Network Guyana (www.oggn.org)
