Exxon says won’t seek to recover signing bonus

ExxonMobil yesterday said that it would not seek to recover the US$18 million signing bonus it paid to Guyana.

The US oil company made the declaration on its Facebook page.

The declaration comes in wake of concerns that the cost recovery provisions in the controversial 2016 Production Sharing Agreement, signed between the Government of Guyana and ExxonMobil subsidiary Esso Exploration and Production Guyana Limited, could pave the way for the company to seek to recover the US$18 million.

Under the agreement, ExxonMobil could claim up to 75% per annum of oil production as repayment for its investment and costs.

The signing bonus was a major feature of the 2016 agreement, which enabled ExxonMobil to gain a longer exploration period.