Reuters | UPDATE 1-Guyana expects proposal from India for long-term crude purchases

Jan 17,2023

Guyana expects to soon receive a proposal from India for long-term purchases of the South American country's oil, President Irfaan Ali said on Tuesday, a new attempt to reach a government-to-government deal potentially leading to better sale terms for Guyana.

Guyana's government is entitled to a share of crude produced off the nation's coast by a consortium led by Exxon Mobil Corp . In 2022, Ali's government received a total of 13 cargoes of crude, and it expects to receive and export 17 cargoes this year, the finance minister said earlier this week.

"India has made it very clear that they have an interest in being one of the purchasers of Guyana's oil," said Ali in a press conference at the State House residence in Georgetown. "The technical teams will work and see what proposals India puts forward."

Ali traveled to India earlier this month, where he met with India's Petroleum Minister Hardeep Singh Puri and encouraged oil companies to participate in an incoming bidding round for crude and gas explorations blocks.

India's ONGC Videsh is considering a bid for some of the 14 areas on offer, and refiner Indian Oil Corp also is looking to work in Guyana in collaboration with ONGC Videsh, two people close to the talks told Reuters.

Guyana and India in 2021 failed to reach an agreement for direct sales of Guyana's sweet crude to Indian state refiners.