IMF urges Guyana to resolve Exxon cost-oil disputes, strengthen oversight

GEORGETOWN (CMC):

The International Monetary Fund (IMF) is urging Guyana to accelerate efforts to resolve longstanding disputes over ExxonMobil’s cost-oil audits, saying the issues have important fiscal and governance implications.

In its Staff Concluding Statement following the 2026 Article IV Mission, released on Friday, the IMF said the government should move quickly to settle the outstanding audits, including through arbitration where necessary.

“Given their fiscal and governance implications, resolving these audits in a timely manner remains important,” the IMF said.

The Fund acknowledged steps already taken by Guyanese authorities to address the disputes, including pursuing arbitration.

One of the outstanding audits covers the period 1999 to 2017 and identified US$214.4 million in costs that auditors determined were either ineligible for cost recovery or lacked sufficient supporting documentation. The audit was conducted by IHS Markit.

A second audit, covering a later period, was carried out by SGS in partnership with Martindale Consultants and Guyanese firms Ramdihal and Haynes, Eclisar Financial and Vitality Accounting and Consultancy. That audit remains under review.

The IMF also called on Guyana to continue strengthening its capacity to audit the rapidly expanding oil and gas sector.

“The authorities are encouraged to continue strengthening audit capacity, especially in the oil and gas sector,” the report stated.

Beyond the petroleum industry, the IMF urged Guyana to improve public procurement as government spending continues to rise.

It stated that stronger procurement practices and consistent compliance with existing rules, supported by a new centralised digital procurement platform, would help safeguard the quality and efficiency of public spending.

The IMF mission, led by Senior Economist Lusine Lusinyan of the Fund’s Western Hemisphere Department, held meetings with Finance Minister Dr Ashni Singh, Bank of Guyana Governor Dr Gobind Ganga, Attorney General Anil Nandlall, Parliamentary Affairs and Governance Minister Gail Teixeira, and representatives from the private sector and other stakeholders.