Cabinet Approves Signing of MoU Between India, Guyana on Cooperation in Hydrocarbon Sector

The MoU covers various aspects of the hydrocarbon sector, including sourcing crude oil from Guyana, Indian companies participating in exploration and production in Guyana, collaboration in crude oil refining, capacity building, strengthening bilateral trade, cooperation in the natural gas sector, developing regulatory policies in the oil and gas sector in Guyana, and collaboration in clean energy, including biofuels and solar energy.

The cooperation in the hydrocarbon sector with Guyana will enhance bilateral trade, encourage investment in both countries, and diversify India’s sources of crude oil, thereby ensuring energy security.

It will also provide Indian companies with the opportunity to gain experience by working with global oil and gas companies in upstream projects, aligning with the vision of “Aatmanirbhar Bharat” (self-reliant India).

The MoU will be effective upon its signature and will remain in force for five years, automatically renewing thereafter unless either party provides a written notice of termination three months in advance.

Guyana has recently emerged as a significant player in the oil and gas sector, with substantial oil discoveries. It accounts for a significant portion of global oil and gas discoveries and is projected to experience a significant increase in production.

On the other hand, India is the world’s third-largest energy consumer, third-largest consumer of oil, and fourth-largest refiner. With its growing energy needs, India aims to diversify its crude oil sources and acquire quality overseas assets to ensure energy access, availability, affordability, and security.

Recognizing the importance of Guyana and the potential areas of cooperation in the hydrocarbon sector, India proposes to enter into an MoU with Guyana to strengthen the bilateral relationship.