Guyana’s ability to audit oil and gas, other extractive sectors expanding – IMF

– says scope exists to strengthen compliance in non-oil mining sector Guyana’s growing

capacity to perform its own cost oil audits and audits in other extractive sectors has been recognized by the International Monetary Fund (IMF), though they also noted in a recent assessment that more work is needed to ensure audit reports are published in a timely manner.

Following their recent 2025 Article IV Consultation with Guyana, the IMF made note of Guyana’s continued implementation of reforms. As a matter of fact, they pointed out that these reforms will further strengthen fiscal transparency and anti-corruption frameworks, including in extractive industries.
“Internal audit capabilities are expanding, and more effort is needed to ensure a timely publication of audit reports of some public companies and local authorities. In line with the recommendations of the MESICIC 2024 report, work is ongoing in multiple areas to strengthen anti-corruption efforts,” the IMF noted.
It was reported only on Friday that the Guyana Revenue Authority (GRA) has been advised by the Natural Resources Ministry to proceed onto the next step, which could eventually lead to arbitration, in order to settle the US$214.4 million cost oil claim that was flagged during an audit of ExxonMobil’s expenses racked up between 1999 and 2017.
In 2019, British firm IHS Markit conducted an audit of ExxonMobil Guyana Limited’s (EMGL) cost oil expenses incurred between 1999 and 2017 from its operations in Guyana and flagged US$214.4 million as questionable costs.
Since then, however, local firms have taken over the cost oil audits. There have been two more oil audits of Exxon’s expenses in Guyana. In the second audit, done by a consortium of local and international firms, VHE Consulting, for the period 2018 to 2020, Exxon has responded to the audit findings. Moreover, VHE Consulting also won the contract to conduct the third cost oil audit for 2021 to 2023.

Beneficial ownership
Guyana’s efforts, following the Extractive Industries Transparency Initiative (EITI) report, published in 2024 to implement the beneficial ownership transparency recommendation in line with the EITI standards, was also recognized by the IMF.
Beneficial ownership relates to persons who effectually own or control a company, and reap the revenue that company generates, even if they are not the legally registered owners of the company.
In the 2024 GYEITI report, one of the commitments had been for the setting up of a Beneficial Ownership register. And in the oil and gas sector, efforts have been made by the Government of Guyana to ensure that companies which represent themselves as Guyanese must have Guyanese as the majority beneficial owners.
According to the Local Content Act passed in 2021, oil and gas companies operating in Guyana, as well as their contractors and sub-contractors, must procure from Guyanese companies by the end of 2022, 90 per cent of office space rental and accommodation services; 90 percent of janitorial, laundry and catering services; 95 percent of pest control services; 100 percent of local insurance services; 75 percent of local supply of food; and 90 percent of local accounting services.
These are just some of the 40 different services outlined in the first schedule.
The Act also defines a local company as one incorporated under the Companies Act and beneficially owned by Guyanese nationals.
Beneficial ownership is defined as owning 51 percent of the company. Additionally, a local company is expected to have Guyanese in at least 75 percent of executive and senior management positions and at least 90 percent in non-managerial and other positions.

Compliance
Meanwhile, the IMF also noted that more remains to be done to ensure that companies in non-oil mining sectors such as gold mining, are in compliance with the law. This, according to the fund, is especially true for large companies.
“There is also scope to strengthen regulatory compliance in the non-oil mining sector, particularly with large-scale operators. Staff supports the authorities’ strong efforts to strengthen the rule of law through hiring more magistrates and judges,” the IMF noted.
The IMF’s statement comes after one of their staff teams, led by Alina Carare and Lusine Lusinyan, recently completed their 2025 Article IV Consultation with Guyana.
The consultation, held both virtually and in-person in Georgetown from February 24 to March 7, 2025, involved discussions with high-level Government officials, including Vice-President (VP) Dr Bharrat Jagdeo, Finance Minister Dr Ashni Singh, and Central Bank Governor Dr Gobind Ganga, as well as stakeholders from the private sector, labour unions, and banks.