Houston — Exxon Mobil received such a "favourable" deal from Guyana, home to the biggest new deepwater oil play, that the tiny South American country should rewrite its tax laws, the IMF has said. While Guyana should honour the deal, future contracts should ensure the state gets a higher portion of crude proceeds, the fund said in a report. The country, South America’s third-poorest with an average per capita income of about $4,000, has little experience of dealing with multinational behemoths such as Exxon. Terms of the 2016 contract "are relatively favourable to investors by international standards", the IMF said. "Existing production-sharing agreements appear to enjoy royalty rates well below what is observed internationally," it said. IMF officials have visited the nation often over the past nine months as they help improve its legal, fiscal and regulatory frameworks before Exxon commences oil production in 2020. Key global projects Guyana has become one of Exxon’s five key glob...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now