Oil audit says EEPGL overpaid for drill ship

The Deepwater Champion

The IHS Markit audit of oil expenditure by ExxonMobil’s subsidiary, Esso Exploration & Production Guyana Limited (EEPGL) has revealed that not only did it procure the services for the Transocean-owned Deepwater Champion drill ship way above costs for similar vessels available but that the company had submitted US$500,000 for seismic works prior to 2008 and had no supporting documents for it.

Checks with the Guyana Geology and Mines Commission (GGMC) which was then responsible for the oil and gas sector also showed no record of seismic activity from the company for period claimed.

“Neither EEPGL nor GGMC provided any records of seismic activity prior to 2008, and EEPGL provided no other evidence for the expenditure amounting to [US]$500,000 of seismic related costs that was incurred in 2000/01. The Audit Team recommends that this amount be removed from the Cost Bank,” the audit report stated.