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ExxonMobil paid no taxes to Guyana in 2023 but reported US$656M handed over to country Sep 29, 2024 News Kaieteur News – A look at United States oil giant, ExxonMobil Corporation’s first-ever disclosure of payments to host governments, it appears as though the company’s Guyanese subsidiary paid US$656 million in taxes to  the Government of Guyana (G0G) last year. President Irfaan Ali However, the reality is that Exxon is not paying income taxes in Guyana. The company has said that while it is subject to Guyana’s income tax laws, the taxes assessed on the company’s operation are paid by the government, rather than the company itself. In addition to this, Exxon is then given documentation to show that the taxes have been paid in Guyana. This arrangement is owed to the 2016 Production Sharing Agreement (PSA) the Coalition Government signed with ExxonMobil Guyana Limited (EMGL) for the Stabroek Block. On Wednesday, September 25, Exxon made a filing disclosing that it paid US$49 billion in global tax and duties expenses – this includes US$16 billion in income taxes. Recently, this publication reported that EMGL did not have to pay over GYD$197 Billion in taxes to the Guyana Revenue Authority (GRA) for the past two years [$138B in 2023, $59B in 2022], as the taxes were paid by the Government in keeping with the lopsided PSA. ExxonMobil Corporation Chief Executive Officer (CEO), Darren Woods EMGL is the operator of the Stabroek Block, with a 45% interest, while Hess Guyana Exploration Ltd. holds 30% interest and China National Offshore Oil Corporation (CNOOC) Petroleum Guyana Limited holds 25% interest. All of the block-partners enjoy a tax-free ride in Guyana. The provision of the Stabroek Block contract which gives Exxon and its affiliates a tax-free ride in Guyana has attracted criticisms locally and internationally. The contract states in Article 15.1 that the Contractor (ExxonMobil Guyana Limited) as well as its affiliates shall not be subjected to tax, value-added tax, excise tax, duty, fee, charge, or impost in respect of income derived from petroleum operations, property held or transactions except as specified under the agreement. Further, Article 15.4 states that the sum equivalent to the taxes owed by the company will be paid by the Minister responsible for Petroleum to the Commissioner General of the GRA. It should be noted that the contract also allows for the issuing of a receipt to ExxonMobil, indicating that it has met the local tax requirements to avoid the burden of double taxation. Article 15.5 of the contract states, “Within one hundred and eighty (180) days following the end of each year of assessment, the Minister shall furnish to Contractor proper tax certificates in Contractor’s name from the Commissioner General, Guyana Revenue Authority evidencing the payment of the Contractor’s income tax under the Income Tax Act and corporation tax under the Corporation Tax Act. Such certificates shall state the amount of tax paid individually on behalf of Contractor or parties comprising the Contractor and other particulars customary for such certificates.” The Irfaan Ali-led administration has explicitly stated that due to the sanctity of the contract, the 2016 PSA will remain in place, despite the deal being labeled as ‘lopsided’. In fact, last year, President Ali, during an interview with the British Broadcasting Corporation’s (BBC) Senior Journalist Gideon Long, reiterated his administration’s position to not renegotiate the ‘lopsided’ Exxon deal. President Ali said, “Well, I would say definitely, we did not have the best of deals, Exxon had a good deal signed by the last government.” Ali then highlighted that the sanctity of contract is “very important” to his government, adding, “And we can’t go back on that.” Exxon’s Global Tax Bloomberg reported that Exxon paid US$7.41 billion in taxes and royalties to the United Arab Emirates (UAE) last year, which is more than any other country globally. It was stated too that ExxonMobil paid US$49 billion of global tax and duties in 2023, compared with total earnings of almost US$41 billion, according to the company (Sep 25) in a regulatory filing under Section 1504 of the Dodd Frank Act. Indonesia, Nigeria and Malaysia were also among ExxonMobil’s top tax recipients, with combined payments of about US$10.8 billion. In the US, ExxonMobil’s largest production country, the oil giant paid US$6.6 billion, with about two-thirds going to states and local authorities and the remainder to the federal government. ExxonMobil said the figure “does not reflect a reliable estimate” for its total US tax liability, which was more than US$10 billion, due in part to credits and payments related to prior years. Related Similar Articles

KN Publisher calls for nationwide ‘lights out’ protest against looting of Guyana’s resources Sep 29, 2024 News Kaieteur News – Publisher of the Kaieteur News (KN) Glenn Lall has called on citizens to participate in a country-wide ‘lights out’ protest every night for one month. Kaieteur News Publisher, Glenn Lall The protest is to show citizens’ disapproval of the country’s politicians’ inability to properly manage the country’s wealth and natural resources. He called on citizens to turn their lights off for five minutes every night at 19:00h for one month. Lall, an outspoken advocate for better resource management made this call on Wednesday evening during the airing of his radio programme, the Glenn Lall Show. The Publisher noted among other things that Guyana’s politicians continue to refuse to renegotiate the meager 2% oil contract with ExxonMobil. Lall stressed that despite repeated calls for action, there has been no effort to install the country’s own meters at the oil pumps, ring-fence the oil projects, or collect taxes and cap the exorbitant equity or interest charges on Exxon’s investments—measures that could make every Guyanese “super, super rich.” Lall said, “In what many are calling a heist … it seems the riches of Guyana’s oil wealth are reserved for Exxon and other foreign companies, leaving locals with scraps.” He questioned the political leaders’ vision for the wealth. “Scrubbing Exxon’s toilets, cleaning their patios, washing their yards, and spraying for mosquitoes, rats, and roaches, that’s the reality of the riches being offered from Guyana’s trillion-dollar oil sector, but the situation grows even direr,” the KN Publisher said. Turning his attention to electricity, the Kaieteur News Publisher noted that for years, the government has subsidized billions from the national treasury to ease the burden on citizens by lowering costs of water, electricity, and fuel. However, the businessman pointed that citizens are not the only ones benefiting from these subsidies. “…Foreign companies, including ExxonMobil, who are already walking away with billions of US dollars in profits from Guyana’s resources…These foreign giants, already reaping unimaginable wealth from our resources, enjoy the same subsidies meant for struggling Guyanese. Adding insult to injury, to meet the growing demand for electricity for these businesses, the government is renting power ships, buying electricity at 50 cents per kilowatt-hour, only to sell it back to at 40 cents per kilowatt-hour,” he said. Lall said too that “The same happens with fuel”. “The government is digging deeper into the nation’s pockets to import more fuel, only to hand it out to these foreign companies tax-free. And we call this “development”? Guyana is not developing; it’s being exploited.” He noted that the money the country earns from the meager 2% royalty, all disappears back into subsidies, supporting the very companies that are draining our wealth. “We are spending more out of our pockets than we are receiving, all to provide services for these foreign corporations, while our people are left to scrub their toilets just to survive. And this in a country rich with gold, diamonds, timber, bauxite, and oil,” Lall said. He continued, “Where is Guyana heading, brothers and sisters? Are we on the path to collapse or total disaster? Our wealth is being siphoned off right before our eyes, and yet, most remain silent. Is this the future we want for our children? Is this the legacy we are leaving behind for the next generation?” The publisher therefore called for a nationwide protest. He explained, “We aren’t taking to the streets because the heat wave from the oil operations and climate change is unbearable.” Instead, Lall said that for the month of October, starting Wednesday, October 1, and “let’s take a stand by turning off our lights for five minutes every night at 7 PM. Whether you are at home, at work, or in a place of worship, turn off your lights and light a candle if you have to. Even if you are driving, stop for five minutes and leave your park lights on. Let’s send a clear, powerful message to these four leaders—we won’t take this looting anymore. We demand a full stop to these giveaways so that every Guyanese, now and for generations to come, can live a great life from the resources our Creator blessed us with,” the Publisher stated. Related Similar Articles

Five men wanted for abduction Sep 29, 2024 News Kaieteur News – Five persons are wanted in relation to the abduction of Joshua David, also known as ‘Bricks’ on September 27, 2024 at Main Street, Georgetown. The Guyana Police Force (GPF) on Friday issued wanted bulletins for Aaron Allyene also known as ‘Cats’, Alpha Poole, Wayne Barker, Dwayne Griffith, and Osafo Peters also known as ‘Saddest’. Police reported that Allyene’s last known address is West Ruimveldt, Poole at Lot 127 D’Aguiar Park, Barker at Lot ‘G’ Norton Street, Lodge, Griffith at Lot 68 William Street, Kitty, and Peters at William Street, Kitty. Kaieteur News understands that the wanted men are connected to the drive-by shooting that killed 39-year-old Lawrence Wayne, known as ‘Boy Boy,’ and 40-year-old Anthony Havercome on D’Urban Street, Georgetown, on August 24, 2024. This publication reported that 25-year-old Travis Ceres, a vendor from East La Penitence, 38-year-old Teon Allen of Sophia, 31-year-old Stanley Matthews, a labourer of Sophia, 33-year-old Destra Authur, another vendor and a resident of East La Penitence and Lloyd Roberts, a miner of Golden Grove, East Bank Demerara (EBD) were all hospitalized with gunshot wounds. Ceres sustained a gunshot wound to his lower abdomen, while Allen, who is no stranger to the law, was shot in his shoulder. Matthews received two gunshot wounds, one to the left hand and another in the left thigh. Additionally, Authur was shot in the left leg while Wayne was shot in his right thigh and hand. Detectives learned that the victims might have been attending an “All Black Party” at V’s Flavour Delight, located at 23 D’Urban Street, Lodge. At around 05:00hrs on Saturday, police closed off the party but some persons continued to consume alcohol in front of the location. The host of the event, Keon Aaron said that he was checking off his bar when he heard several gunshots. While finding out where it came from, he reportedly saw a black car speeding in the western direction from the location. He then saw several bloodied individuals being placed in vehicles and being rushed away to the city hospital. Ranks subsequently made checks at the GPHC where they learned that several persons were shot and one of them killed during a shooting at the location. The police subsequently located the car believed to have been used in the shooting. It was found parked on the eastern carriageway of Manatee Place, South Ruimveldt, Georgetown. “The vehicle was processed and photographed by the CID team, and eleven 9mm spent shells, along with one .223 spent shell, were found in the front and back seats of the car,” police said while adding that “two suspected bullet holes were seen in the lower right back passenger door, and what appears to be a graze from a bullet to the left side back just above the gas tank.” Police were able to contact the owner of the vehicle, 33-year-old Coleen Burrowes, a businesswoman. She told investigators that the car was stolen from her around 04:00hrs on Saturday by two men on a XR-Honda motorcycle at Victor and D’Urban Streets,  Georgetown. The woman claimed that she was in the company of her cousin in the car and had stopped the vehicle there to urinate when the men rode up to her. Burrowes related that the pillion rider dismounted the motorcycle, and pointed a gun at her while demanding that she give them the car. Fearful for her life, she, along with the other occupants of the car exited the car, and the armed man entered and drove it away while his accomplice followed behind on the motorcycle. A report was made to the East La Penitence Police Station.  Nevertheless, the three men who are wanted in relation to the murder of Wayne and Havercome were identified as, 18-year-old Omalie Vieira, whose last known address is at Lot 47 Princess, Lodge Georgetown, 31-year-old Keron Hinds, whose last known addresses are at Lot 4 Smyth Street, Werk-en-Rust Georgetown and 134 E 59th Street, Brooklyn, New York, and 30-year-old Dominique Darrel Osborne, whose last known addresses are Lot 44 Princess Street, Lodge, Georgetown and 196 E 51st Street, Brooklyn, New York. Police are asking persons who have seen or have information about the whereabouts of the trio to make contact with the police on telephone numbers 227-1149, 225-8196, 227-1611, 226-3405, 225-6978, 225-8196 or the nearest police station. Meanwhile, Hinds and Osborne recently alleged that they are being framed by members of the Guyana Police Force (GPF), who are allegedly being paid by drug dealers to get them. To read more; https://www.kaieteurnewsonline.com/2024/09/17/men-wanted-for-durban-st-drive-by-killings-claim-they-are-being-framed-by-police/. Related Similar Articles

Guyana must ring-fence Stabroek Block projects before 2027 – Chris Ram Sep 29, 2024 News Kaieteur News – The relentless calls for government to ring-fence the projects in the Stabroek Block have so far fallen on deaf ears but if Guyana is to implement such a provision, it has to be done before 2027. Attorney-at-Law, Christopher Ram This was recently highlighted by Chartered Accountant and Attorney-at-Law, Christopher Ram during an episode of ‘Oil Talk’ hosted by the Oil and Gas Governance Network (OGGN) on Kaieteur Radio (99.1/ 99.5 FM). The implementation of a ring-fencing provision would mandate each oil project pay for itself. After the costs are repaid to the Stabroek Block partners, profits to Guyana would significantly increase. The government of Guyana has refused to ring-fence the projects, insisting that this could affect investments by the Co-Venturers, ExxonMobil, Hess and CNOOC. As such, Exxon is allowed to take revenues, which should come to Guyana, to invest in other projects and even finance the company’s exploration campaign. To date, government has approved six projects without this key provision. Ram however cautioned that the implementation of ring-fencing should be done prior to 2027. He explained, “In another couple (of) years even ring-fencing will become an academic thing because in 2027, all exploration activities under the 2016 Petroleum Agreement will cease, so ring-fencing doesn’t count.” Ram in a subsequent interview told this newspaper that unless there is a wave of a magical wand; Exxon will cease exploration activity in the Stabroek Block by 2027, since its exploration license would expire. The areas that do not include discoveries would then be returned to Guyana. He pointed out, “If you read the very beginning of the contract, they (government) issued them with an exploration license which last for a first period of four years then they can say well we want another three years- that’s seven years now. After the three years, you must give up 20% and then at the end of the 10th year your exploration license expires and you give up the rest.” He argued that the developer should not be allowed to charge costs associated with a Floating Production Storage and Offloading (FPSO) vessel of one project to another. The Lawyer pointed out that the People’s National Congress Reform (PNC/R) is apparently unaware of this since the party in its 20-point plan for the oil and gas sector revealed plans to ring-fence oil projects, if it is elected. The plan referenced by the lawyer was announced by the Leader of the Opposition, Aubrey Norton, on Wednesday during a press conference. Ram said, “Apparently, the PNC doesn’t know that, and this 20-point plan that they talk about with ring-fencing. They have just woken up. That’s all I can say about them.” The Opposition’s 10th point states, “Considering the vastly changed conditions since the signing of the 2016 Stabroek Block Production Sharing Agreement (PSA) and consistent with Article 32.1 of the PSA, we will complete a top-to-bottom review of the PSA and then engage the Stabroek Block Partners, to maximize the benefits of the oil resources to the people of Guyana while ensuring a fair share of profit for Stabroek Block Partners. The review will include, but not be limited to ring-fencing of projects, oil tax regime, environmental responsibilities, decommissioning, transparency, the timely reporting of information, regulatory oversight and real-time monitoring, auditing, local content, shared management and decision-making in operations in the oil and gas sector.” Guyana has been urged on multiple occasions by independent experts to ring-fence the Stabroek Block projects but the government remains reluctant, arguing that the country would receive a greater share of profits in the future. Kaieteur News previously reported that in three separate reports dated 2017, 2018 and 2019, the International Monetary Fund (IMF) urged Guyana to ring-fence its oil fence its projects. In one of the reports, the IMF stated: “This asymmetrical treatment of profit and cost oil will benefit the contractor at the expense of delaying government revenue.” Meanwhile, the United Nations Development Programme (UNDP), along with another international expert, Chatham House and the World Bank called on Guyana to include a ring-fencing provision for each project. Director of Financial Analysis for the Institute for Energy Economics and Financial Analysis (IEEFA), Tom Sanzillo painted a more graphic picture in one his reports on Guyana. He said, “The lack of contract protections means that every time Guyana announces it has received more revenue, it is actually being shortchanged…the country may never see the promised annual revenues in the billions of dollars.” Related Similar Articles

CEO of American Oil Company rushed off stage during climate event as protest erupts Sep 29, 2024 News A group of activists with Climate Defiance take the stage during the New York Times’ Climate Forward event on Wednesday. Credit: Ken Schles/Climate Defiance Kaieteur News – The Chief Executive Officer (CEO) of American oil company, Occidental Petroleum, Vicki Hollub, was rushed off the stage as she made her way to an interview at the New York Times’ Climate Forward event. Inside Climate News, an independent organization in a report of the incident said an audience member leapt up into her path, insisting that the company was destroying the environment. “You are not welcome here,” he said. “Tricky Vicki, you can’t hide, we charge you with ecocide.” A dozen other demonstrators joined the action and took to the stage with chants and a banner that read “DON’T TRUST TRICKY VICKI,” and two others that read “LIAR” and “SNAKE OIL.” Some Climate Forward attendees began clapping for the protesters, while others watched in silence or pulled out their phones to record it. There was little audible criticism of the action from the audience, although some attendees voiced annoyance or disappointment at not seeing Hollub speak as they exited and others said they had expected a protest. The event organizers paused the proceedings and cleared guests from the auditorium as New York Police Department officers arrived, warned the protesters that they were trespassing and prepared to arrest the group. Ten activists were taken into police custody. Times staff brought guests back into the auditorium about 10 minutes after the demonstrators had been removed, but after five minutes, they asked everyone to leave again, announcing that the rest of the programme, including Hollub’s interview, would be presented online only. The Climate Forward interview with Michael Regan, administrator of the Environmental Protection Agency, was canceled due to the delay. “Climate criminals should not be allowed in polite society,” said Climate Defiance’s Michael Greenberg after the event. “It is outrageous that the New York Times is hosting a fossil fuel CEO at a supposed climate event.” “The New York Times Climate Forward is a live journalism event designed to bring together influential newsmakers for rigorous and challenging interviews around climate change and political policy,” wrote a Times spokesperson in an emailed statement. “This afternoon, a small group briefly disrupted an on-stage session at Climate Forward. The last interview was streamed live, and a recording will be available on our website and events YouTube page.” In the recorded interview, Hollub responded to the protest. “Here at Occidental, we are working for solutions to the climate change situation that our world faces,” she said. “It’s the greatest crisis that our world has ever faced and we have to come together to work on solutions for that and so, to me, to have those that are seeking headlines rather than solutions interrupt discussions that need to be had is a sad day for them, and I feel bad that they have nothing better to do with their time.” A handful of scattered demonstrations disrupted other events at Climate Week NYC, which brings government, business and NGO leaders, along with thousands of others working in climate and related fields, to the city for 600 environmental events and activities. For activist groups like Climate Defiance, which specialize in disruptive action aimed at powerful individuals, the week provides myriad potential targets. Inside Climate News reported that Occidental Petroleum, known as Oxy, garnered headlines in 2020 when it outlined its “Pathway to Net Zero” strategy. To reach net zero emissions of greenhouse gases, the company projected it would rely heavily on carbon capture projects that use costly and largely unproven technologies many climate activists have said are slowing the implementation of renewable energy. The company also stated it would be “expanding low-carbon fuel products” to meet its goals. This year, a report from Carbon Market Watch, a nonprofit tracking corporate and government carbon policies, called these plans “vague and not aligned with the recommendations of the Intergovernmental Panel on Climate Change.” Related Similar Articles

Gold Miner nabbed with unlicensed firearm and ammo Sep 29, 2024 News Kaieteur News – A 52-year-old gold miner was arrested on Friday after being caught with an unlicensed firearm and ammunition at Five Stage Backdam, North West District, Region One. firearm found in gold miner’s haversack The arrest took place during enforcement duties conducted by ranks from the Tactical Service Unit (TSU), who had received information leading them to stop David Phillips, a resident of Fitzburg, Port Kaituma. Phillips was driving a Hilux pick-up truck bearing registration number #GJJ 9916, with two other gold miners, Allan John and Kester Peters, as passengers. According to police reports, a sergeant in charge approached the vehicle and informed the occupants of their intent to conduct a search. During the search, Phillips identified a haversack as belonging to him. That haversack contained a 9mm pistol, a magazine, and six live rounds of ammunition. When questioned about his firearm licence, Phillips responded negatively. Upon being informed of the offence, he stated, “Boss man, this is backdam; I got this gun for my personal protection.” He was then cautioned and made aware of his rights, after which he chose to remain silent. Upon further inspection, police noticed that the firearm’s serial number and maker’s mark had been filed off. Phillips, along with the unlicensed firearm and ammunition, was taken to the Matthews Ridge Police Station and later transferred to the Port Kaituma Police Station, where he is currently in custody and assisting with the investigation. Related Similar Articles