Oil & Gas

UAE tops list of tax payments from ExxonMobil

September 26, 2024, 9:08 AM

ExxonMobil has been associated with the UAE since 1939 and became a joint venture partner in Zakum Development Company operating the Upper Zakum Oilfield

ExxonMobil paid UAE $7.4bn
US company paid $49bn globally
Qatar received $1.8bn in tax

US energy giant ExxonMobil paid the UAE $7.4 billion in taxes and royalties last year, more than it paid any other country in the world.

From declared annual earnings of almost $41 billion, Exxon paid $49 billion of global tax and duties, including more than $16 billion in income taxes, according to a regulatory filing on Wednesday under Section 1504 of the Dodd Frank Act.

The act was passed under former US President Barack Obama, aimed at combating corruption in the global oil, gas and mining industries. The clause requires all associated US-listed companies to publish how much they paid governments for international projects.

From the Middle East and North Africa region, Exxon paid Qatar $1.8 billion, Iraq almost $29 million and Egypt $8.7 million, according to the filing, which was the first time the company had disclosed such information.

In the US, Exxon’s largest production country, almost $6.6 billion was paid. However, it said the figure “does not reflect a reliable estimate for ExxonMobil’s ultimate tax liability for the reporting year” – its total US tax liability was more than $10 billion – due in part to the purchase of tax credits and payments related to the reporting year but made in prior or subsequent years.

ExxonMobil has been associated with the UAE since 1939 and became a joint venture partner in Zakum Development Company, or Zadco, operating the Upper Zakum Oilfield – the world’s second largest oil field.

Located approximately 84km north-west off the Abu Dhabi islands, Upper Zakum Oilfield, which is equivalent in size to 135 American football fields, has an estimated 50 billion barrels of oil reserves.

ExxonMobil said in the report it was the third highest cash tax payer of global income taxes in the Fortune 25 US companies in 2023, with a worldwide effective income tax rate of 33 percent, excluding acquired companies.