Cabinet Greenlights India-Guyana MoU For Cooperation In Hydrocarbon Sector

New Delhi, Jan 5 (KNN) The Union Cabinet has granted approval for signing of a Memorandum of Understanding (MoU) between the Ministry of Petroleum & Natural Gas, Government of India, and the Ministry of Natural Resources, Republic of Guyana, aimed at enhancing cooperation in the hydrocarbon sector, on Friday.

The proposed MoU encompasses the entire value chain of the hydrocarbon sector, spanning from the sourcing of crude oil from Guyana to the participation of Indian companies in the Exploration and Production (E&P) sector of Guyana.

Additionally, it involves collaboration in crude oil refining, capacity building, the strengthening of bilateral trade, cooperation in the natural gas sector, and joint efforts in developing regulatory policies within the oil & gas sector in Guyana.

Furthermore, the agreement extends to cooperation in clean energy, encompassing biofuels and renewables such as solar energy.

This collaboration is anticipated to bolster bilateral trade, encourage mutual investments, and contribute to diversifying the source of crude oil, thereby enhancing the energy and supply security of India.

The MoU also opens avenues for Indian companies to engage in the E&P sector of Guyana, fostering valuable experience through collaboration with global oil and gas companies in upstream projects, aligning with the vision of "Aatmanirbhar Bharat."

In recent times, Guyana has emerged as a prominent player in the global oil and gas sector, marking its status as the world's newest oil producer.

Notably, recent discoveries amounting to 11.2 billion barrels of oil equivalent represent a substantial share of global Oil & Gas discoveries, with 32 per cent attributed to discovered oil.

Driven by the imperative to ensure energy access, availability, and affordability, India is strategically focusing on cultivating new partnerships in the hydrocarbon sector.

This strategic approach involves both the diversification of crude oil sources and the acquisition of quality overseas assets, aiming to reduce dependencies on a singular geographical or economic unit and enhancing India's strategic manoeuvrability.

Recognising the significance of Guyana and the renewed momentum in the bilateral relationship within the hydrocarbon sector, it is proposed to formalise the MoU with Guyana to facilitate cooperation in various facets of the hydrocarbon industry.

(KNN Bureau)