GEORGETOWN, Guyana (AP) — Indian Prime Minister Narendra Modi said Thursday during a visit to Guyana that his government views the South American country as key to its energy security.
Modi spoke a day after his foreign minister said India is interested in buying up to two million barrels of crude oil from the oil-producing country where large quantities of oil and gas were found offshore nearly a decade ago.
Speaking at a special session of Parliament at the end of his two-day trip, Modi said he views Guyana as an important source of energy and plans to encourage major Indian companies to invest in the country.
Guyana produces approximately 650,000 barrels of sweet light crude oil per day from three oil fields, with production expected to increase to more than one million barrels per day, while production at a further three oil fields will commence in the next three years.
Foreign Minister Jaideep Mazumdar said on Wednesday that India was not necessarily disappointed over its failure to strike a long-term oil sales deal with Guyana. He said talks will continue. He said such a deal would provide “greater predictability.”
The two sides signed a Memorandum of Understanding on Wednesday to strengthen cooperation in hydrocarbon and petroleum products trade.
Guyana’s Minister of Natural Resources, Vickram Bharrat, told reporters that while Guyana is willing to supply India with a large quantity of crude oil, the matter is not simple as ExxonMobil, the main operator of Guyana’s offshore oil production, would have to be consulted and agreed have to deal with such a measure. regulation.
“We know that Exxon will need to make some changes to their lifting schedule and logistics as their preference is for very large ships that can carry two million barrels, mainly due to distance and cost,” Bharrat said.
He added that Guyana prefers Indian companies to bid for oil blocks and negotiations could take place if a bid is made.
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