India’s High Commissioner to Guyana, Dr. K. J. Srinivasa has stated his government’s interest in formalising a long-term contract for the purchase of Guyana’s crude oil.
“Collaboration in the oil and gas sector is proceeding successfully and we hope to further strengthen this by working on a long-term contract between the Indian State-run public sector unit – Indian Oil Corporation – and the Government of Guyana for procurement of crude oil from Guyana to India,” he said during a virtual symposium on Thursday on “Perspectives on Guyana-India Relations from 1838 to 2021”.
While various foreign news agencies have reported that negotiations between Guyana and India are ongoing in this respect there has been no announcement from the Government here.
Last week, the Reuters news agency reported Minister of Natural Resources Vickram Bharrat as stating that India has expressed interest in buying one of the 1 million-barrel cargoes that government is entitled to in order to test the crude in its refineries.
The report added that the Minister maintained that pricing was the “most important” factor for Guyana in any potential deal.
“First and foremost is us getting the best price for our crude,” Bharrat is quoted as stating in a telephone interview.
In March a news report published by the Caribbean Business Report stated that a one-million barrel cargo of Guyana’s Liza light crude was on its way to India aboard a vessel chartered by the commodity trading company, Trafigura Trading LLC.
The report said that India, one of the world’s largest oil consumers has been seeking to reduce its dependence on crude from the Middle East following OPEC’s decision to extend production cuts through to April. As a consequence it has asked refiners to speed up the diversification of imports.
The million-barrel cargo of Guyana’s Liza light sweet crude reportedly set sail on March 2 on Marshall Islands-flagged tanker Sea Garnet bound for India’s Mundra port.
Meanwhile, during his remarks at the opening of the virtual symposium Srinivasa reminded of the longstanding relationship between the two countries which has remained cordial across various changes in administrations.
He reminded that since Guyana’s independence in 1966, India has offered financial and technical support across various sectors partnering in the development of such projects as the Providence Stadium, the installation of traffic lights and drainage pumps across Georgetown and the construction of the Information Technology Centre for Excellence at the University of Guyana among others.
In 2021 this support continues with the funding of infrastructure projects such as the Diamond to Ogle road and the purchase of a ferry to provide service to the Northwest region of Guyana as well as the upgrade of several regional hospitals in Bartica, Suddie and West Demerara and the provision of household solar pumps.
As part of its attempt to build everlasting links with the Indian Diaspora the country has also facilitated various scholarships and exchange programmes for Indo-Guyanese and offered technical expertise in the various sectors.
Srinivasa said that Guyana’s Oil and Gas Sector will benefit from personnel training in India and gas to energy support.
