Govt disputes over US$279M in Stabroek block oil expenses across 3 audits

The Natural Resources Ministry has provided a detailed update on the status of three cost recovery audits related to oil operations in the Stabroek Block, signalling continued scrutiny of expenses declared by ExxonMobil and its co-venturers, Hess and CNOOC.
In a statement, the ministry said that the audits, which were commissioned by the Government of Guyana, are part of the cost recovery verification mechanism outlined in the Petroleum Agreement with the Stabroek Block operators.
The first audit, conducted by IHS Markit, reviewed expenses from 1999 to 2017, and resulted in the Government disputing approximately US$214 million in costs submitted by the consortium. This dispute has triggered a formal resolution process. According to the ministry, both the Government and the co-venturers have agreed to activate the sole expert mechanism provided under the Production Sharing Agreement. The Government has submitted several nominees for this role, and ExxonMobil, acting on behalf of the consortium, has until May 31, 2025, to respond.
The second audit, covering 2018 to 2020, examined US$7.2 billion in declared expenditures. Of this, US$65.1 million was not accepted by the Government. The co-venturers have since submitted updated documentation, which is currently under review.
Both the final reports for the first and second audits are publicly available on the website of the Petroleum Management Programme at http://petroleum.gov.gy/.
Meanwhile, the third audit, which reviews expenses from 2021 to 2023, has been completed and submitted to the Government. The Guyana Revenue Authority (GRA) is now reviewing the initial findings. The GRA has played a central role in all three audits.
The ministry reiterated its commitment to transparency and sound fiscal management of the oil and gas sector, promising to keep the public informed as the audit processes continue.a