-says Guyana is an ‘important’ energy source
INDIA’S Prime Minister Shri Nahendra Modi on Thursday said his government views Guyana as the key to its energy security needs and that he will be encouraging more Indian businesses to pursue investment opportunities here.
He was at the time addressing a special sitting of the National Assembly at the Arthur Chung Conference Centre at Liliendaal.
PM Modi said he views Guyana as an important energy source and intends to lobby Indian businesses to invest in Guyana.
“[The] demand for energy is growing rapidly in India, and India is also diversifying its energy sources,” he said adding, “We view Guyana as an important energy source…We are also making continued efforts to ensure that our businesses invest more in them.”
Meanwhile, at a later press briefing, Jaideep Mazumdar, Secretary (East) in the Ministry of External Affairs noted that the prospects of exploration for the production of crude are promising.
“In the hydrocarbon sector, Guyana has proven…the estimated reserves of oil and gas which are very promising. We would be interested in the participation of exploration and production phase as well.”
He however noted that while many Indian companies are eyeing investment opportunities, the government is hoping for a G to G (Government to Government) partnership in the sector.
“Our oil companies are certainly looking at this. If they do get an opportunity, they would be willing to invest as we have in many countries far from the shores of India,” Mazumdar told reporters.
Following the signing of a Memorandum of Understanding (MoU), it was disclosed that India was interested in securing an agreement for purchasing at least two million barrels of crude oil.
He noted that businesses in India would be interested and ‘willing’ to invest.
However, a final agreement for an oil deal with the two nations lies with the Government of Guyana.
At his weekly news conference, Guyana’s Vice-President Dr. Jagdeo said no discussions on the direct transaction for the sale of our crude to India were held during the PM Modi’s state visit.
He noted that a government-to-government partnership to sell crude would have to be one that ‘makes sense’ to both nations.
He however alluded to the two nations’ agreement on hydrocarbons.
“We want to collaborate in several areas in oil and gas. [There are] enormous expertise in many areas, but also clean energy.”
He noted too that India is leading the world in solar power implementation and Guyana wants to harness these experiences and technologies.
The MoU establishes a framework for Guyana and India to enhance bilateral collaboration in the hydrocarbon sector. This MoU encompasses investment promotion, technology transfer, joint studies and capacity with a focus on fostering energy security and advancing mutual development.
“In the whole hydrocarbon sector, there are lots of areas that we can utilise Indian skills, Indian technology and also Indian investments.”
Earlier this year, it was reported that the trade of hydrocarbon between Guyana and India increased dramatically between 2021 and 2022, hitting an “all-time high” of US$149 million.
Dr. Jagdeo further reminded that Guyana has already secured agreements for its crude to be marketed for the next year.
UK-based BB Energy Trading Limited and JE Energy secured those contracts to market Guyana’s share of crude oil from the country’s three floating production storage and offloading (FPSO) vessels.
