India to send Guyana proposal for long term purchase of oil

India has long been interested in a long term agreement for the supply of Guyana’s oil and President Dr. Irfaan Ali on Tuesday announced that the South-Asian country is expected to send a proposal on this soon.

“This is nothing new, India has made it very clear that they have an interest in being one of the purchasers of Guyana’s oil.

“The technical teams will work and see what proposals India puts forward,” President Ali said during a press conference hosted at State House in Georgetown

But the Guyanese Head of State clarified that the government has not agreed to this long term supply deal. President Ali said that the country will assess the proposal first.

“It is an examination of a possibility based on a request made by India,” Dr. Ali said.

Based on the agreement with the ExxonMobil-led consortium operating in the prolific Stabroek Block offshore, Guyana got 13 out of the 102 lifts of one-million barrels of oil; this year, 136 lifts are expected and Guyana will get 17 of those lifts.

And India hopes to purchase from Guyana’s share of those one million barrels of oil. President Ali also said that he is only aware of this interest in Guyana’s oil from India.

The President, however, noted that India is also hoping to participate in the “entire ecosystem of oil and gas” in Guyana. That would entail training professionals and facilitating more private sector connections.

Outside of the long term oil supply, President Ali said that the two governments are also exploring the possible award of oil blocks directly to India.

He also invited both the Indian government and Indian private sector players to participate in Guyana’s auction for oil blocks this year.

The bid round for 14 new oil blocks was launched last December and it is expected to close by April, 2023. Guyana’s government hopes to award contracts by the end of May 2023.

The oil blocks on auction are for shallow and deep water areas.