February 3, 2021 Read More →

Guyana gets none of ExxonMobil’s $5.6B tax bill

Kaieteur News:

Supermajor ExxonMobil paid US$5.6 billion in income taxes last year, accounting for its global operations.

This was revealed during its 2020 Q4 earnings call yesterday.

ExxonMobil’s Chief Executive Officer (CEO) and Chairman, Darren Woods said “We remain focused on increasing long-term value for our shareholders by investing in our highest-return assets, preserving the strength of the balance sheet, and paying a reliable dividend.”

Exxon’s 2020 income tax expenses amount to nearly four times Guyana’s 2020 budget. But Guyana received nothing from ExxonMobil, its partners, affiliates and sub-contractors in income taxes because former Minister of Natural Resources, Raphael Trotman negotiated a contract for Stabroek block operations which grant them a permanent tax waiver of all taxes. 

The agreement’s tax article also allows for Guyana to give the companies tax certificates which show that their tax liabilities, which Guyana is responsible for paying, are taken care of.

Guyana would be forfeiting US$653 million in taxes by 2025, according to Director of Finance at the Institute for Energy Economics and Financial Analysis, Tom Sanzillo. 

[Staff Report]

More: Exxon paid US$5.6B in income taxes in 2020 — Guyana got nothing

Posted in: IEEFA In the News

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