GEORGETOWN, Guyana — 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 from the oil-producing nation where vast deposits of oil and gas were found offshore nearly a decade ago.
Addressing a special sitting of Parliament at the end of his two-day trip, Modi said he views Guyana as an important energy source and that he plans to encourage large Indian businesses to invest in the country.
Guyana produces about 650,000 barrels a day of sweet, light crude oil from three oil fields, with production expected to ramp up to more than one million barrels daily, with production at three more oilfields slated to start in the next three years.
On Wednesday, External Affairs Minister Jaideep Mazumdar said India was not necessarily disappointed about not being able to seal a long-term oil sale deal with Guyana, saying talks will continue. He said such a deal would ensure “greater predictability.”
The two sides did sign a memorandum of understanding on Wednesday to strengthen cooperation for hydrocarbon trade and petroleum products.
Guyanese Natural Resources Minister Vickram Bharrat told reporters that while Guyana is willing to supply India with a large amount of crude, the matter is not simple because ExxonMobil, the main operator in Guyana’s offshore oil production, would have to be consulted and agree to such an arrangement.
“We know Exxon has to do some amount of changes to their lifting schedule and logistics because their preference is for the very large vessels that can accommodate two million barrels mainly because of distance and cost,” Bharrat said.
He added that Guyana prefers that Indian companies bid for oil blocks and that negotiations could occur if a bid is submitted.
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