Exxon Paid $7.41 Billion In Taxes To UAE
The US-based oil and gas major Exxon Mobil Corp. has revealed that it paid $7.41 billion in taxes and royalties to the UAE government in 2023, more than any other country globally, in its first-ever disclosure of payments to host governments.
In a regulatory filing with the US Securities and Exchange Commission (SEC) under Section 1504 of the Dodd Frank Act, Exxon Mobil Corp. said that it has made these payments to the Department of Finance of Abu Dhabi government.
Exxon paid $49 billion of global tax and duties in 2023, compared with total earnings of almost $41 billion. Indonesia, Nigeria and Malaysia also were among Exxon’s top tax recipients, with combined payments of about $10.8 billion.
In the US, Exxon’s largest production country, the oil giant paid $6.58 billion, with about two-thirds going to states and local authorities and the remainder to the federal government. The figure does not reflect a reliable estimate for its total US tax liability, which was more than $10 billion, due in part to credits and payments related to prior years, the company said.
Exxon also said in the filing that it is the third-highest cash payer of worldwide income taxes in the Fortune 25 group of the US companies.
Debate Likely Over Disclosures
According to Rigzone, the new disclosures may reignite the debate over who shares in the spoils of fossil fuel production and whether the industry should be entitled to subsidies, such as those contained in the Inflation Reduction Act.
European and Australian companies have been disclosing their government payments for several years while the US is only just beginning its publication, four years after the rules were finalised by the SEC.
Aubrey Menard, senior policy advisor for Natural Resource Justice of Oxfam America, this was a major victory for both civil society and advocates who have fought tirelessly for the implementation of the rule over the past 14 years.
“This crucial information will empower citizens to influence how revenues from natural resources are used and evaluate the value corporations bring to the countries where they operate,” Menard said.
Exxon paid $1.62 billion last year to Guyana, home to one of the company’s fastest-growing and most profitable projects. Nearly half of the payment was the country’s production entitlement, which equated to 17 million barrels of oil. Guyana pays Exxon’s corporate taxes on its behalf as a result of the production-sharing contract they signed before oil was discovered in 2015.
Exxon Mobil said that the disclosures in the filing focuses on its earnings from oil and gas extraction and does not include payments made to governments related to our other business segments. The tax payments reported in this document do not equal our ultimate tax liability, it said.
