The union cabinet approved an agreement between the ministry of petroleum and natural gas and the ministry of natural resources in the Republic of Guyana, focusing on collaboration in hydrocarbon sector. The comprehensive deal encompasses various facets of the hydrocarbon value chain, spanning from the procurement of crude oil from Guyana to the active involvement of Indian companies in Exploration and Production (E&P) ventures in Guyana.
The agreement also includes cooperation in crude oil refining, capacity enhancement, the promotion of bilateral trade, joint efforts in the natural gas sector, the development of regulatory policies for the oil and gas industry in Guyana, and collaboration in the realm of clean energy, encompassing biofuels and renewable sectors such as solar energy.
The collaborative agreement is anticipated to fortify bilateral trade, stimulate investments in both nations, and contribute to diversifying the sources of crude oil, thereby enhancing the energy and supply security of the country. As reported by Press Information Bureau, the deal presents a valuable opportunity for Indian companies to engage in the E&P sector of Guyana, facilitating the acquisition of experience through collaboration with global oil and gas entities in upstream projects. The agreement will remain operative for a duration of five years.
