ExxonMobil Guyana Limited has been in the spotlight regarding its nominee for a sole expert to address a dispute involving US$214 million in cost oil from 1999 to 2017. The company has not provided clear answers about the nominee amid discussions of possibly taking the matter to arbitration.
Reports indicate that ExxonMobil is advocating for one of its nominees to resolve the seven-year dispute that emerged from a 2019 audit conducted by the UK firm IHS Markit. The audit identified US$34.34 million in claims as ineligible and noted that US$180 million lacked proper documentation.
John Colling, Vice President and Business Services Manager at ExxonMobil Guyana Limited, refrained from addressing whether the negotiations were complicated by a potential conflict of interest regarding the nominee. He stated, “As sole experts are considered, they must meet a number of qualifications that are acceptable to both parties, and certainly objectivity is one of them.” He emphasized that objectivity and relevant experience are key factors being discussed with the government.
Colling mentioned that both ExxonMobil and the government are working diligently to identify a mutually acceptable sole expert. However, he suggested that if an agreement cannot be reached, the matter may be referred to the International Chamber of Commerce (ICC) for selection.
The Guyana Revenue Authority (GRA) has already dismissed any possibility of altering the disputed audited costs, responding to ExxonMobil’s assertion that the US$214 million should not be classified as cost oil. The total expenditure on exploration in the Stabroek Block from 1999 to 2017 amounts to US$1.6 billion. Should ExxonMobil concede that the US$214 million is not cost oil, Guyana would be entitled to 50 percent of that amount, equating to US$107 million, with the remainder allocated to co-venturers ExxonMobil, Hess, and China National Overseas Oil Company (CNOOC).
Source: demerarawaves.com
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