President Ali says Guyana will explore oil, gas blocks award in deals with India

President Irfaan Ali on Thursday, speaking in India where he is on a seven-day visit, said Guyana is looking at awarding oil and gas exploration blocks to Indian companies as part of a broader hydrocarbon cooperation it is negotiating with India.

In a Nidhi Verma’s, Reuters story Ali was reported to have told Indian companies they can bid in the auction for the 14 offshore exploration blocks.

“Apart from the auction, we are discussing government-to-government partnership in a number of areas including exploration,” Ali told Reuters when asked if Guyana would offer blocks to Indian companies through direct negotiations.

India is the world’s third biggest oil importer and consumer, buying over 84% of the oil it needs from overseas. Indian companies are scouting for acreage overseas and want to secure oil supplies through long-term deals.

India and Guyana have formed two technical groups to look into details of bilateral cooperation in the hydrocarbon sector including oil supplies to India under long term deals, Ali said, after a meeting with Indian oil minister Hardeep Singh Puri.

Details of this transaction would be finalised during Vice President Bharrat Jagdeo visit in February according to an Indian government statement issued after the meeting between Puri and Ali, reported Reuters.

In 2021 India imported Guyanese Liza crude but refiners have not imported the crude since then, as alternative cheaper grades have been available from elsewhere, reported Reuters.

Presently Guyana produces 340,000 barrels per day (bpd) of oil and aims to raise it to 1.64 million bpd by end of the decade.

At the government meeting, Engineers India Ltd (ENGI.NS) signed an agreement to provide consultancy for a 300 megawatt combined cycle power plant of state-run Guyana Power and  Light Company.

Extracted and edited from Reuters