India expresses interest in investing in Guyana’s oil sector and longterm purchase agreement

As the Prime Minister of India, Narendra Modi, wrapped up his visit to Guyana on Thursday, his Government indicated its strong interest in Guyana’s Oil and Gas Sector. 

India’s Minister of External Affairs, Secretary (East), Jaideep Mazumdar said with an estimated 11 billion barrels of proven oil reserves, Guyana’s Oil and Gas Sector holds great promises, and India stands ready to invest in the country’s offshore Blocks.  

“We will be interested in participating in the exploration and production phases as well. Our oil companies are certainly looking at this, and if they do get the opportunity, they will be willing to invest as we have invested in many countries of the world far from the shores of India,” the Secretary (East) told reporters at a press conference on Thursday. 

The Indian Government has also expressed a desire to purchase crude oil directly from the Guyanese Government on a long-term basis, and was encouraged to submit a proposal. However, though it has sold at least one of its oil lifts to India, Guyana said, at this time, it is not interested in such long-term contractual arrangements. 

On Thursday, Mazumdar said the interest remains the same. 

“I would expect that as the volumes available to the Guyanese side, in terms of crude and gas, availability arise, they would be in a position to enter into long term contracts. Because those are the things that will help us to take larger volumes in a more predictable way and make our transportation of such large volumes also economically feasible,” he explained. 

Emphasizing the importance of having greater predictability in the purchasing of crude oil, Indian Government official said the ball is in Guyana’s court. 

In the interim, the two countries have signed a Memorandum of Understanding (MOU) to strengthen cooperation in hydrocarbon trade and petroleum products.

It encompasses investment promotion, technology transfer, joint studies, and capacity building across the entire hydrocarbon value chain. The agreement underscores a shared commitment to fostering energy security and advancing mutual development priorities.   

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