The Indian government wants to purchase oil from Guyana at the market value, according to India’s High Commissioner to Guyana, Dr K J Srinivasa.
“India is an energy-hungry nation and 85 per cent of our petroleum requirements are imported. So we would love to work with the government of Guyana to import oil, if possible, from Guyana on a long-term basis, and Guyana gets a secured buyer for all its oil annually,” the diplomat told the state-owned Guyana Chronicle newspaper.
Srinivasa said that state-owned Indian companies such as Hindustan Petroleum Corporation Limited (HPCL), Bharrat Petroleum Corporation (BPCL) and Oil and Natural Gas Corporation (ONGC) would be interested in buying crude from Guyana in the future.
India’s primary source for oil is the Gulf region, and, up to recently, Venezuela. However, the Asian country also has oil stakes in many countries including Russia, Siberia, Central Asia and South America.
Guyana awarded the first three cargoes of its share of Liza production to Shell Western Supply and Trading in a restricted opening tender. The first allotment loaded in February 2020, the second in May and the final in early August.
Liza is produced by an ExxonMobil-led consortium at Stabroek, where output began in December 2019. The consortium includes US independent Hess and Chinese state-owned CNOOC unit Nexen.
Production is expected to reach 120,000 b/d in August, ramping up to 750,000 b/d in 2025.
The newspaper reported that India hopes to have a five US trillion-dollar economy by 2025, and Srinivasa said Guyana’s economic growth has also caught the attention of New Delhi and its entrepreneurs.
He said the public and private sectors have shown an active interest in partnering with Guyana’s growth story. In addition to petroleum, he cited sugar, coconuts and rice as areas India is willing to invest in.