India, Guyana sign pact for oil exploration, refineries
Nov 21, 2024
India’s Prime Minister, Narendra Modi during his address at State House, Georgetown
By Davina Bagot
Kaieteur News-India’s Prime Minister, Narendra Modi on Wednesday highlighted the important role Guyana will play in his country’s energy security.
The Prime Minister is currently on a three-day visit and is expected to return today. This is the second time in 56 years since a Prime Minister of India has visited Guyana. As for Modi, he first visited some 24 years ago as a private citizen but has returned to deepen bilateral ties between the two countries this time around. During an event on Wednesday at the Baridi Benab, State House in Georgetown, the Prime Minister noted that the two countries identified a number of areas to deepen cooperation. This includes cooperation on agriculture, technology and the hydrocarbon sectors among others.
The Prime Minister said, “Given the new possibilities in the area of energy, we will move forward together as natural partners. Guyana will play an important role in India’s energy security. In this regard, we will create a road map for a long-term partnership. The MOU we are signing today on this subject will further strengthen our cooperation.”
He said he was pleased that Guyana joined initiatives birthed by India such as the International Solar Alliance, the Coalition for Disaster Resilient Infrastructure, and the Global Bio-fuel Alliance. “These will help strengthen efforts being made across the world to move towards a green and sustainable future,” Modi said.
Meanwhile, Secretary in the Ministry of External Affairs, India, Jaideep Mazumdar in a subsequent interview with the media revealed elements of the energy MOU signed between the two countries. He said, “The hydrocarbons agreement is an umbrella agreement that covers many aspects. It includes both upstream and downstream aspects from prospecting and exploration down to setting up downstream projects like petroleum refinery projects, gasification projects etcetera.”
The agreement will also allow for skills training of Guyanese in the areas of partnership with India. When asked how soon exploration activities could commence, he said this will depend on the offer proposed by Guyana. “I’m sure the oil companies in India will be in conversation. There are both private as well as public sector oil companies in India who would be interested in participating in hydrocarbons sector.”
When it comes to a deal to purchase Guyana’s sweet light crude, Mazumdar said he believes there is a wide scope for cooperation adding that “the future is open” in that regard.
He was keen to note that India would like to have a “more direct” relationship with Guyana however, “that is for Guyana to decide how they wish to proceed.”
According to Mazumdar, India offers greater predictability. “For example even in the offtake of crude we need large quantities and if we were to know well in advance that the quantities are available, the contracts would be much more easy to conclude and also the transportation is another aspect because this is a very long way away,” he explained. When asked about the pricing for crude, he said the two sides have not yet discussed those terms but this would be ironed out during the negotiation phase.
(India, Guyana sign pact for oil exploration, refineries)
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