GUYANA | U.S. probing Exxon contractor in Guyana for smuggling drugs, gold

GEORGETOWN, Guyana, July 14, 2023 - According to the Reuters news agency in an explosive feature, United States government officials repeatedly warned Exxon Mobil to avoid doing business with two mining magnates in Guyana, who face a U.S. investigation on suspicions of money laundering, drug trafficking and gold smuggling.

This is  according to five people with knowledge of the matter and two intelligence reports seen by Reuters. In an expansive feature, Reuters says the Texas-based oil giant ignored the advice, which was delivered during meetings in late 2021 and early 2022, and cut a deal to build a $300 million onshore logistics base with a consortium that included the two Guyanese businessmen, Nazar Mohamed and his son, Azruddin.

Exxon announced the contract award in April 2022.

The Mohameds have close ties with Guyana’s president and some cabinet members, according to one of the U.S. intelligence reports and three sources with knowledge of their relationships. The government controls access to vast and newly discovered oil reserves off the South American nation’s coast. 

The Mohameds, owners of Mohamed’s Enterprise, had mostly focused on gold mining and foreign currency exchange before expanding into the oil business in recent years and securing the lucrative deal with Exxon.

Now, U.S. officials are considering imposing sanctions on the Mohameds, according to four of the sources and two additional people familiar with the matter. That could require Exxon to sever its business relationship with any sanctioned individuals or companies.

A man passes by the office of Mohamed's Enterprise in Georgetown, Guyana. Its owners, members of a consortium contracting with Exxon Mobil, face a U.S. investigation into suspicions of money laundering, drug trafficking and smuggling illegally mined gold. REUTERS/Sabrina Valle

The companies plan to expand output to 1.2 million bpd by 2027, a massive haul that would make Guyana’s production higher than what many OPEC nations, including neighboring Venezuela, produce today.

Exxon did not answer detailed questions from Reuters for this story but said in a statement: “We comply with all applicable laws where we operate and conduct our business."

The Mohameds deny any wrongdoing. They are being investigated by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Department of Homeland Security and other U.S. agencies, on suspicions of smuggling Colombian cocaine and illegally mined Venezuelan gold to the United States, Europe and the Middle East, according to the five sources with knowledge of the probe.

The Mohameds are also suspected of laundering money for drug traffickers and criminals, including sanctioned Russian nationals operating in the region, according to one of the intelligence reports.

The FBI, DEA and Homeland Security all declined to comment.

(Click Here to Read Full Story On Reuters).