GEORGETOWN, Guyana — During his visit to Guyana, Indian Prime Minister Narendra Modi emphasized the strategic importance of the South American nation for India’s energy security.
Modi’s statements followed those of India’s foreign minister, who mentioned the country’s interest in purchasing up to two million barrels of crude oil from Guyana, known for its significant offshore oil and gas discoveries made nearly ten years ago.

Speaking at a special session of Parliament at the conclusion of his two-day visit, Modi underscored his belief that Guyana poses as a vital energy supplier. He expressed intentions to motivate large Indian enterprises to invest in Guyanese energy sector developments.

Guyana currently boasts a production capacity of approximately 650,000 barrels of sweet, light crude oil per day from three operational oil fields. Moreover, projections indicate that production could exceed one million barrels daily within the next few years, with three additional oil fields expected to commence operations.

On the previous day, India’s External Affairs Minister Jaideep Mazumdar noted that while the country did not secure a long-term oil sale agreement with Guyana, the negotiations would persist. He highlighted that finalizing such a deal would contribute to overall market predictability for both nations.

In the recent discussions, the two nations formalized a memorandum of understanding aimed at enhancing collaboration in hydrocarbon trade and petroleum products.

Guyanese Natural Resources Minister Vickram Bharrat remarked on the complexities surrounding a substantial crude supply arrangement. He specified that consultations with ExxonMobil, which operates the majority of Guyana’s offshore oil production, are crucial. Bharrat pointed out, “Exxon needs to adjust their lifting schedule and logistics, as they favor larger vessels that can transport two million barrels due to cost and distance factors.”

Additionally, Bharrat conveyed that Guyana is inclined to favor Indian firms in the bidding for oil blocks, indicating that further discussions could take place should a proposal be submitted.