India’s Government has approved the signing of a memorandum of understanding (MoU) with Guyana for joint ventures in the Caribbean nation’s lucrative hydrocarbon sector.
In a statement announcing the development on Friday, the Indian Government said the MoU will cover “the complete value chain of hydrocarbon sector including sourcing of crude oil from Guyana, participation of Indian companies in Exploration and Production (E&P) sector of Guyana, cooperation in the areas of crude Oil refining, capacity building, Strengthening bilateral trade, collaboration in natural gas sector, collaboration in developing regulatory policy framework in oil & gas sector in Guyana; Cooperation in the area of clean energy including biofuels as well as renewables sector including solar energy etc.”
The deal, which will run for five years from the MoU’s signing date, is expected to have significant impacts on the Indian economy as the government said it will diversify India’s source market for crude oil, which will lead to energy security.
As India’s population and economy grow, the country is expected to account for approximately 25-28 per cent of the global energy demand growth between 2020-2040. The government in New Delhi said that fact makes it important for India to secure its energy sources.
Guyana is expected to become one of the world’s biggest oil and gas producers in the coming years.
Guyana’s proven oil reserves are over 11 billion barrels and this places Guyana amongst the top 20 oil producing nations. (Loop News)
