Though the Government intends to sign an energy-related Memorandum of Understanding (MoU) with the Government of India, it has signed no agreement so far with the South Asian country or any other country with regards to sale of its crude or the exploration and development of its remaining oil blocks, according to Vice President, Bharrat Jagdeo.
At a press conference today, the Vice President, who recently returned from India, said the MoU will cover a number of areas in the Energy Sector.
“The MOU will deal with exploring the possibility of trading in crude oil, sale in crude oil but we agreed that this has to be beneficial to both countries, and it has to follow market conditions. There is no agreement to sell any oil to India at this point in time, and any such agreement in the future will have to be competitive and will have to benefit both parties,” the Vice President explained.
The Indian Government has long expressed a desire to purchase crude oil directly from the Guyanese Government on a long-term basis.
But while one of Guyana’s oil lifts went to India in the past, the country has been encouraged to submit a proposal for review by the Ali Administration.
The draft MoU, which is currently under review by the Narendra Modi Administration, will also cover the possibility of bilateral cooperation in the exploration and development of Guyana’s petroleum resources, in particular its offshore blocks.
The Vice President explained that aside from the 14 oil blocks that are up for auction, there are several areas remaining offshore that are available for bilateral arrangements.
“There has been no agreement on any bilateral engagements too with any Government so far. All of the areas are available but it would depend on the terms of the bilateral engagement and those are not up for discussion as yet. We are only discussing with India as we would have done with so many others, a framework agreement that will be signed,” Mr Jagdeo further clarified.
In addition to India, the Government is in talks with Brazil, Qatar, Britain and the United Arab Emirates (UAE) about oil exploration offshore Guyana.
Should those bilateral talks not bear fruit, the remaining oil blocks will be placed up for auction, the Vice President said.
With Guyana moving ahead with its Gas-to-Energy Project, it is also looking to collaborate with India in the area of Natural Gas. It is also seeking technical support in the area as part of its quest to strengthen its regulatory framework and boost the capacity of the Ministry of Natural Resources.
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