India has approved the signing of a five-year MOU with Guyana, focusing on cooperation within the hydrocarbon sector.
The MOU is aimed at diversifying India’s oil import sources and enhancing the country’s energy security.
It encompasses collaboration across the hydrocarbon value chain, including the sourcing of crude oil and the participation of Indian companies in the exploration and production (E&P) sector in Guyana.
As per the announcement, the agreement will facilitate Indian involvement in Guyana’s burgeoning oil and gas industry, which has recently made significant discoveries.
Guyana’s emergence as a major oil producer, with an estimated 11.2 billion barrels of oil equivalent, represents 18% of the world’s total oil and gas discoveries, the announcement said.
The partnership is expected to strengthen bilateral trade and investment, and provide Indian companies with opportunities to gain valuable experience in upstream projects alongside industry leaders.
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In addition to crude oil sourcing and E&P collaboration, the MOU covers cooperation in refining, capacity building, natural gas and the development of regulatory policy frameworks.
It extends to clean energy cooperation including biofuels and renewable sectors such as solar energy.
This aligns with India’s broader energy goals, which include a push towards green energy initiatives.
Separately, Reuters, citing sources, reported that India is reducing equity investment for three state oil refiners to $1.8bn (Rs149.6bn) for the fiscal year 2023–24.
Initially, a Rs300bn equity support was announced, but it will now be provided in a staggered manner, with Rs150bn allocated for the upcoming fiscal year as the Indian Government tries to shrink its fiscal deficit.
The investment in Bharat Petroleum, Hindustan Petroleum and Indian Oil Corporation is aimed at supporting their green energy projects.
Last week, India’s GAIL signed a liquified natural gas supply deal with Vitol Asia.