Guyana to Take No Action on Exxon Contractor Until Formally Notified on U.S. probe - VP

Sabrina Valle
Friday, July 21, 2023
Guyana's Vice President Bharrat Jagdeo - Image Credit: Department of Public Information, Guyana

Guyana's Vice President Bharrat Jagdeo on Thursday said the government will not take action against a local Exxon Mobil Corp contractor after Reuters reported its owners are under a U.S. criminal investigation.

Last Friday, Reuters disclosed that U.S. government officials repeatedly warned Exxon against doing business with two Guyanese mining magnates who are involved in a logistics operation for the company's offshore oil operations.

The pair - Nazar Mohamed and his son Azruddin - are under suspicion of money laundering, drug trafficking, and gold smuggling, according to five people with knowledge of the matter and two intelligence reports seen by Reuters.

The Texas-based oil giant ignored the advice, which Reuters said was delivered during meetings in late 2021 and early 2022, and cut a deal to build a $300 million onshore logistics base with a consortium that included the two businessmen. Exxon announced the contract award in April 2022.

In a broadcast media briefing, Jagdeo said the government has not been officially informed of any investigations into the Mohameds.

"The government of Guyana will act on this matter when the U.S. engages it officially - if it engages," the vice president said. "Right now, we have a story in Reuters, with some allegations."

It was the first time a government official commented on the report, which also revealed the Mohameds have ties with President Irfaan Ali and some cabinet members.

"President Ali meets a lot of people. I have no doubt that he is friendly with the entire business community, the Mohameds. People go to meet the president all the time, it doesn't mean they get special treatment," Jagdeo said.

Guyana has not yet disclosed a date for its first competitive oil exploration round, which has been repeatedly postponed. Officials are reviewing the contract rules before sending them to parliament for approval, he said.

One of the considerations, Jagdeo said, is a financial penalty equivalent to the development costs pledged by bidders in the event their commitments are not met.

(Reuters - Reporting by Sabrina Valle in Houston; Editing by Aurora Ellis)

Categories: Energy Industry News Activity South America

Related Stories

Petrobras Moves Ahead with Oil Exploration Plans off Ivory Coast

Petrobras Moves Ahead with Oil Exploration Plans off Ivory Coast

TotalEnergies and Shell Exchange Lipa and Gato do Mato Stakes

TotalEnergies and Shell Exchange Lipa and Gato do Mato Stakes

Shell Makes FID for Trinidad Offshore Gas Project

Shell Makes FID for Trinidad Offshore Gas Project

Current News

UK Firm Seeks Suppliers to Build Full-Scale Tidal Energy Prototype

Brava Energia Inks $65M Deal with PetroReconcavo for Natural Gas Assets

Record Offshore Wind Auction Required for UK to Meet Targets

First French Floating Wind Farm Fully Commissioned

Subscribe for OE Digital E‑News

Offshore Engineer Magazine