THE Government of India is willing to purchase Guyana’s share of oil lifts at the market value, annually, through a government to government agreement, according to High Commissioner of India, Dr K J Srinivasa.
“India is an energy-hungry nation and 85 per cent of our petroleum requirements are imported. So we would love to work with the Government of Guyana to import oil, if possible, from Guyana on a long-term basis, and Guyana gets a secured buyer for all its oil annually,” he told the Guyana Chronicle.
The High Commissioner had noted that Indian companies such as Hindustan Petroleum Corporation Limited (HPCL), Bharrat Petroleum Corporation (BPCL) and Oil and Natural Gas Corporation (ONGC) – all State-owned companies – would be interested in buying crude from Guyana in the future.
India’s refineries are geared towards refining and processing oil from across the world. India’s primary source for oil is the Gulf region, and, up to recently, Venezuela.
However, the Asian powerhouse also has oil stakes in many territories spanning the globe from Russia, Siberia, to Central Asia and even South American.
Guyana awarded the first three cargoes of its share of Liza production to Shell Western Supply and Trading in a restricted opening tender. The first allotment loaded in February 2020, the second in May and the final in early August.
Liza is produced by an ExxonMobil-led consortium at Stabroek, where output began in December 2019. The consortium includes US independent Hess and Chinese state-owned CNOOC unit Nexen.
Production is expected to reach 120,000 b/d in August, ramping up to 750,000 b/d in 2025.
India hopes to have a US$5 trillion economy by 2025 and Dr. Srinivasa explained that Guyana’s economic growth has also caught the attention of New Delhi and its entrepreneurs.
He said the public and private sectors have shown active interest in partnering with Guyana’s growth story. In addition to petroleum, he cited sugar, coconuts and rice as areas India is willing to invest in.
The High Commissioner also laid out key projects in Guyana under the Indian Development and Economic Assistance Scheme (IDEAS).
These include East Bank Demerara-East Coast Demerara Link Road project under a Line of Credit of US$50 million; provision of an ocean-going ferry with a grant of US$8 million and a Line of Credit (LoC) of US$10 million for use in the North West; upgrading of three regional hospitals at West Demerara, Suddie and Bartica with an LoC of US$17.5 million; supply of fixed and mobile pumps with a US$4 million LoC and supply of a pilot scale rice husk gasifier.
Meanwhile, he noted Guyana’s great potential for generating renewable energy. India wants to increase its installed renewable energy capacity from 78 GW to 175 GW (1 GW = 1,000 MW) by March 2022. Of that 175 GW, 100 GW is expected to come from solar power.
Moreover, India wants to nearly double the share of renewable power in its total installed capacity to 40 per cent by 2030.
“We have the expertise in India and gradually we are moving away from fossil fuels,” he said, noting that “India has the cheapest source of solar energy in the world and is changing all its fossil fuel projects.”
He added that the world largest solar farm was recently built in India in two years and it was done on time.
With an abundance of land, good weather, fertile soil, natural resources and water, Dr Srinivasa said Guyana is a blessed country.
“This is the ideal country, with tremendous potential,” he said