New oil supply deal on agenda as Jagdeo travels to India in February

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India will continue to engage Guyana on a possible long-term supply deal for oil produced in the offshore Stabroek Block when Vice President Dr. Bharrat Jagdeo leads another delegation to India in February.

This is according to a statement issued by India’s Ministry of Petroleum and Natural Gas following talks between subject minister Shri Hardeep Singh and Guyana’s Head of State Dr. Irfaan Ali.

“The leaders agreed on direct Government to Government cooperation across the entire spectrum of the oil and gas sector including increased long-term offtake, participation in exploration and production activities in Guyana, technical cooperation in the midstream and downstream sector and capacity building,” the statement read.

It was also noted that technical teams would be established to advance these discussions.

And importantly, the statement announced that the “contours of future cooperation” would be finalised when the Vice President visits India next month.

President Dr Irfaan Ali met with India’s Minister of Petroleum and Natural Gas and Housing and Urban Affairs, Shri Hardeep S Puri on Thursday in Delhi, India. Other officials joined them for talks (Photo: Office of the President/ January 13, 2023)

The leaders also witnessed the signing of a contract between Guyana Power and Gas Inc. and Engineers India Limited (EIL) for providing Consultancy Services for Integrated Natural Gas Liquids Plant and 300 Mega Watt (MW) Power Plant project in Guyana.

Energy cooperation has been a key consideration during President Ali’s official visit to India this week.

President Ali, during an interview with the Asian News International Network,  said he and Indian Prime Minister Narendra Modi are discussing several potential areas for partnerships in the oil and gas sector including India’s participation in this year’s auction for new oil blocks offshore Guyana.

The Guyanese Head of State said that the two governments are also exploring how Guyana’s natural gas resources can be used.

India has been trying to ink a long term supply deal with Guyana for more than a year now.

India, the world’s third-largest crude consumer and importer, approached Guyana’s government about a possible long-term deal to buy the South American country’s oil in 2021.

So far, the country purchased at least two lifts of oil- that is, the two consignments of the one million barrels of oil the government receives on behalf of Guyana. That contributed to the US$200 million in bilateral trade between the two countries.

A long term supply deal has not yet been finalised. Guyanese officials said that getting the best price for Guyana’s crude oil, be it from India or otherwise, is a priority.

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