By Antonio Dey | HGP Nightly News |
ExxonMobil Guyana has confirmed that it did not include any local tax credit in its 2023–2024 tax filings, amid heightened scrutiny from U.S. lawmakers over the company’s tax practices in Guyana.
President of ExxonMobil Guyana Limited (EMGL), Alistair Routledge, made the clarification during a media briefing on Monday at the company’s headquarters in Ogle, East Coast Demerara.
Routledge’s statement followed a recent letter from three U.S. Senators — Jeff Merkley, Chris Van Hollen, and Sheldon Whitehouse — to ExxonMobil’s global CEO Darren Woods, requesting details on how the company accounts for its U.S. tax liabilities arising from the 2016 Stabroek Block Production Sharing Agreement (PSA).
Under the terms of the PSA, ExxonMobil and its partners pay no corporate taxes directly to the Government of Guyana. Instead, the state issues tax receipts indicating that the taxes have been “paid” locally, a mechanism that serves to prevent double taxation in jurisdictions where the companies are registered.
Routledge, however, emphasized that ExxonMobil has not claimed any Guyana tax credits in the United States.
“Prior to 2023, we were not making profits here in Guyana, so there were no tax credits from that,” he explained. “From this point up until now, there have been no Guyana tax credits that have been used by ExxonMobil.”
The EMGL President added that the company remains in a cash flow-negative position, owing to its continued heavy investments in multiple offshore projects.
“We’re continuing to work through all these projects, investing significant amounts of money in the country,” Routledge said. “On a cash flow basis, we are still in a cumulative negative position.”
When asked about cost recovery, Routledge disclosed that the company’s recoverable expenses currently total approximately US$6 billion.
He also confirmed that ExxonMobil Guyana’s new headquarters in Ogle is now fully operational, housing around 400 employees, including staff from SBM Offshore, one of the company’s key contractors in Guyana’s oil and gas operations.
ExxonMobil operates the Stabroek Block through a consortium with Hess Corporation and CNOOC Petroleum Guyana Limited. The company’s partner, Hess, is being acquired by Chevron, which will soon join the joint venture following final regulatory approvals.
The U.S. Senate inquiry and ExxonMobil’s response have renewed public focus on Guyana’s oil taxation framework, which has been the subject of ongoing debate regarding transparency, fiscal terms, and long-term national benefits.
