‘Serious interest’ as five Indian companies hoping to bid for Guyana’s oil blocks

Five Indian companies involved in the oil and gas sector are hoping to bid for oil blocks offshore Guyana as the South-Asian country seeks to secure more petroleum resources to fuel its development efforts.

This was disclosed by Sanjeev Tokhi, the Director (Exploration) at India’s Oil and Natural Gas Corporation (ONGC) Videsh.

Tokhi told a delegation of journalists visiting from the Caribbean and Latin American that India is keen on securing more crude oil from various overseas sources.

And he confirmed that ONGC Videsh, the overseas arm of India’s national oil company, wants to participate in Guyana’s auction, though he said there are some fiscal terms that the company is engaging Guyana’s government on.

“We are eager to participate in that, not only us but four other sister companies.

“…(We) have interest in both shallow and ultra-deep water areas,” Tokhi told the News Room.

The other Indian companies interested in Guyana and the country’s auction include the Indian Oil Corporation, Oil India Limited, Bharat Petroleum Corporation Limited and Gail (India) Limited.

ONGC Videsh has already established itself in several countries. In the region, it has operations in Colombia, Brazil and Venezuela.

With more than 11 billion barrels of oil found in the prolific Stabroek Block offshore Guyana, the South American country has caught the attention of India for some time now.

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

The oil blocks on auction are for shallow and deep water areas and if successful, companies will be guided by a fiscal and contractual terms meant to garner greater benefits for Guyana.

Tokhi said ONGC Videsh is very serious about entering the Guyana market.

“We have had very serious discussions at very different levels, even at the highest level,” he said.

Though these five companies are keen on investing together in Guyana’s oil and gas sector, the Director also said ONGC Videsh is open to collaboration with other partners.

Partnerships, he explained, are particularly crucial for production in the deep water areas since greater capital investments are needed.