A high-level Guyana delegation led by Prime Minister Mark Phillips and Minister Vikram Bharrat is in India to enhance the two nations’ all-purpose relationship. During their stay, they met India’s President Droupadi Murmu, Vice-President Jagdeep Dhankar, and Mr. Subrahmanyam Jaishankar, the Minister of External Affairs.
India is interested in establishing a multi-year oil purchase agreement with Guyana and acquiring stakes in the South American nation’s exploration areas, according to Mr. Vickram Bharrat, Guyana’s Minister for Natural Resources.
Speaking at the India Energy Week event in Goa, Mr. Bharrat mentioned that a decision on the crude oil sales to India would be made in due course, subject to approval by Guyana’s cabinet.
India seeks to diversify its crude sources as the world’s third-largest oil importer and consumer.
Earlier this month, Guyana approved signing a five-year memorandum of understanding (MoU) with India for energy cooperation. Following a meeting with India’s oil minister, Mr. Hardeep Singh Puri, Mr Bharrat also noted that Indian companies are interested in acquiring stakes in Guyana’s exploration acreage through negotiation rather than through a bidding process.
Despite Indian companies not participating in Guyana’s recent oil and gas bidding round, Mr Bharrat expressed a willingness to negotiate agreements for exploration blocks.
Regarding the possibility of offering stakes in the Stabroek Block to Indian companies, Bharrat clarified that Guyana could only offer stakes through negotiation in relinquished areas. It is anticipated that Guyana may launch an exploration bidding round later this year for the relinquished areas of Stabroek and other blocks.
Stabroek, led by a consortium led by ExxonMobil, oversees offshore production in Guyana. The block has already achieved a production rate of 650,000 barrels per day (bpd), which is expected to reach 1.2 million bpd by 2027. Guyana’s oil production averaged 377,000 bpd in 2023.