🇬🇾

The Guyana Revenue Authority has initiated legal action against Exxon Mobil following claims by a supplier that the company erroneously overcharged for oil well equipment, amounting to approximately $12 billion.

Exxon, headquartered in Trinidad, and Ramps Logistics attributed the overvaluation to a technical error, wherein the quoted amount was in US dollars instead of Guyanese dollars. The Guyanese dollar holds a value of about half a US cent.

Alistair Routledge, Exxon’s regional manager, assured that the error was identified early and asserted that no party incurred any losses. He stated that the company has since revised its procedures to prevent similar incidents from occurring in the future.

Accurate declarations are crucial for Guyana’s oil revenues under its production-sharing contract with Exxon, as the government receives its share of production after deducting costs.

Exxon, recently greenlighting a sixth development project, aims to double its production capacity to 1.3 million b/d by 2027, according to Bloomberg.

Guyana’s Vice President, Bharrat Jagdeo, announced plans for the Guyana Revenue Authority to conduct a thorough audit of overdue invoices from previous years to ensure accuracy, with Exxon’s cooperation.