Govt. pre- approves uncapped importation for ExxonMobil-Contract

The Government has found it prudent to pre-approve uncapped importation for ExxonMobil. The oil giant can import unlimited numbers of items totalling more than 250.

These items include All Terrain Vehicles (ATVs), Trailers, computers, other vehicles, bulldozers, cement, gravel, hammer wrenches, lights, drums, water tanks and waste bins. The items that are considered pre-approved are outlined in Annex D of the 2016 contract signed between Esso Exploration and Production Limited (ExxonMobil) and the APNU+AFC government. Minister of Natural Resources, Raphael Trotman signed on Government’s behalf.

Some of the items listed in Annex D can be sourced in Guyana. Also, the need for ATVs for offshore operations is not clear. ExxonMobil, in most instances, states why a specific item is required, but the need for ATVs was not listed.

Annex D is to be applied in harmony with Article 21 of the contract.

Article 21 states that ExxonMobil and all its affiliates engaged in Petroleum Operations shall be permitted to import, free of duty, VAT or all or any other duties, taxes, levies or imposts, all equipment and supplies required for Petroleum Operations including but not limited to drillships, platforms, vessels, geophysical tools, communications equipment, explosives, radioactive sources, vehicles, oilfield supplies, lubricants, consumable items (other than foodstuffs or alcoholic beverages or fuel), as well as all items listed on Annex D. Interestingly, the long list of items in annex D is not all the oil giant wants to import. The contract states; “The aforementioned items, including but not limited to the items listed on Annex D, shall be deemed approved and certified by the Chief Inspector to be for use solely in carrying out Petroleum Operations. The Contractor shall give prior notification to the Minister of Sub-Contractors engaged in Petroleum Operations.” Even items that were not listed within Annex D are to be considered pre-approved. Further, the contract states that each expatriate employee of ExxonMobil or its affiliates who have been assigned to work in Guyana will be given duty free as well. The contract states: “… Subject to the limitations and conditions set out in the Customs Act, to import into Guyana free of import duty and taxes within six (6) months on first arrival his personal and household effects including one (1) motor vehicle, provided, however, that no property so imported by the employee shall be sold by him in Guyana except in accordance with Government regulations and upon the payment of the prescribed customs duties. Any importation or replacement of motor vehicles by Expatriate Employees of the Contractor (including any Affiliated Company) and of Sub-Contractors shall be a matter for consultation with the Minister.”

The contract also states that each expatriate employee of the Contractor (including any Affiliated Company) and of Sub-Contractors shall have the right to export from Guyana, free of all duties and taxes, and at any time, all of the items imported. As for the company of itself, the contract states that, “Any of the items imported into Guyana may, if no longer required for Petroleum Operations hereunder, be freely exported at any time by the importing party, without the payment of any export duty or impost; provided, however, that on the sale or transfer by the importer of any such item to any person in Guyana (other than the Government) import duty shall be payable by the importer on the value thereof at the date of such sale or transfer as determined by the Customs and Excise Department in accordance with their applicable rules.”

(Kaieteur News)