India Seeks Multi-Year Oil Deal With Guyana, Eyes Exploration Stakes

Goa, Feb 9 (KNN) India is actively pursuing a multi-year oil purchase deal with Guyana while considering acquiring stakes in the country's exploration areas, as announced by Vickram Bharrat, Guyana's Minister for Natural Resources on Thursday.

Bharrat disclosed this information during the India Energy Week event in Goa, indicating India's intention to broaden its crude oil supply base.

However, any agreement would necessitate approval from Guyana's cabinet, underscoring the importance of diplomatic and governmental channels in such ventures.

The proposal aligns with India's ambitions to broaden its crude oil supply network, given its status as the world's third-largest oil importer and consumer.

Earlier this month, India endorsed a five-year memorandum of understanding (MoU) with Guyana for energy cooperation, laying the groundwork for deeper collaboration.

In discussions with India's oil minister, Hardeep Singh Puri, Bharrat mentioned the interest of Indian companies in securing stakes in Guyana's exploration acreage.

Notably, Indian entities prefer negotiations over bidding processes for such acquisitions, indicating a preference for bilateral agreements.

Although Indian companies did not partake in Guyana's recent oil and gas bidding round, Bharrat affirmed the country's openness to negotiations for exploration blocks.

He hinted at a potential exploration bidding round later this year, focusing on relinquished areas of key blocks like Stabroek.

Stabroek, dominated by a consortium led by Exxon-Mobil, serves as a pivotal offshore production site for Guyana, boasting three floating production storage and offloading facilities (FPSOs).

The block has already achieved a production rate of 650,000 barrels per day (bpd), with projections aiming for 1.2 million bpd by 2027.

Guyana's burgeoning oil industry, with production averaging 377,000 bpd in 2023, presents promising opportunities for international partnerships.

India's interest signals a potential symbiotic relationship, wherein Guyana can expand its market reach, while India secures a diversified and stable crude oil supply.

This strategic manoeuvre underscores the evolving dynamics of global energy geopolitics, with both India and Guyana poised to leverage mutual benefits in the realm of oil exploration and trade.

(KNN Bureau)