Exxon Sparks IMF Concern With Weighty Returns in Tiny Guyana
- Oil deal ‘favorable’ to Exxon, future ones need improving: IMF
- Country is home to biggest new deepwater oil play in a decade
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Exxon Mobil Corp. got such a “favorable” deal from Guyana, home to the biggest new deepwater oil play, that the tiny South American country should rewrite its tax laws, the International Monetary Fund said.
While Guyana should honor the existing deal, future contracts should ensure the state gets a higher portion of crude proceeds, the fund said in a report seen by Bloomberg News. The country, South America’s third poorest with an average per capita income of around $4,000, has little experience of dealing with multinational behemoths such as Exxon.