India and Guyana have agreed to cooperate in the oil and gas sector, including long-term crude purchase from the South American country and investment in its upstream sector. Oil minister Hardeep Singh Puri met Guyana president Mohamed Irfaan Ali.
More About The Agreement Between India & Guyana:
The leaders agreed on direct government-to-government cooperation across the entire spectrum of the oil and gas sector including increased long-term offtake, participation in exploration and production activities in Guyana, technical cooperation in the midstream and downstream sector and capacity building.
The energy-synergy of India: Associations with Colombia, Guyana and Venezuela:
- India is the third-largest consumer and importer of oil worldwide and nearly 85 per cent of its oil demand is met through imports from abroad that includes nearly 10 per cent from Latin America and Caribbean region (LAC).
- In the world arena, with the growing energy demand in Asia, crude oil from Latin Americais moving eastward into China and India. LAC with its surplus crude and opportunities for investment fits in perfectly within India’s energy security strategy. Crude petroleum oil traded between India and Latin America has become central to India’s energy security.
- India has expressed interest in accessing Guyana’s crude oil. Guyana’s Minister of Natural Resources and India’s Minister of Petroleum Hardeep Puri met in October 2022 on the sidelines of Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC 2022) in the United Arab Emirates where they discussed areas of cooperation in the energy sector.
- Indian companies are importing significant volumes of petroleum coke, a by-product of oil upgrading and an alternative to coal, from Venezuela. Pet coke is inexpensive compared to coal whose prices have surged immensely. The high quality, large-scale production, low sulphur content and competitive price have made Venezuelan petcoke very attractive despite the downside that the cargo takes nearly 50 days to arrive in India.
- Colombia, which produces more than 1 million barrels a day (60 percent of energy generated is hydro-electrical)and is relentlessly working towards the diversification of sources of energy can be India’s clean partner in the energy sector.