India’s Union Petroleum Minister, Hardeep Singh Puri, revealed on March 4 that discussions have been underway with Guyana, Suriname, and Namibia regarding potential oil cooperation. Puri said that despite the ongoing voluntary oil output cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), there is no shortage of crude oil globally.
“There is no shortage of crude oil in the world. My view is that there is enough oil present with OPEC+… we have been talking to Guyana, Suriname, Namibia. Venezuela has some difficulties, US$600 million were stuck… that is coming in. I am confident. We will navigate through this. In coming time I do not see any difficulty in this,” he is quoted as saying in the Economic Times.
India wants oil from ‘stable geographies’ such as Guyana, Brazil and Norway | OilNOW
India, known as the world’s third-biggest oil importer and consumer, aims to diversify its crude sources.
One significant development in this pursuit is Guyana’s forthcoming Memorandum of Understanding (MoU) with India. The MoU initiates a potential pathway for India to consider purchases from the South American country, among other things.
The Indian Cabinet recently approved the proposed MoU between India and Guyana. Discussions for this bilateral oil agreement have been ongoing for over two years, showcasing India’s long-standing interest in Guyana’s oil resources.
Guyana’s oil production has been steadily increasing, with multiple developments being brought online by ExxonMobil. While current production stands at 645,000 barrels per day, Exxon aims to reach 1.2 million barrels per day by 2027. Notably, Guyana adopts a cautious approach toward the sale of its crude, prioritizing competitive selling strategies to ensure optimal financial returns.
Vice President Bharrat Jagdeo has previously emphasized that any agreement allowing India to purchase Guyana’s crude would be subject to competitive and market-driven conditions.
Suriname is yet to begin offshore oil production. But TotalEnergies pending development has been creating a lot of buzz. The company is likely to submit a plan of development to the Suriname government by year-end. Development studies have been launched. The company expects to achieve first oil by 2028. On Sept. 13, Total announced plans to plug US$9 billion in the Block 58 development to extract the massive oil finds hidden in the Sapakara South and Krabdagu fields – close to some 700 million barrels in total. The appraisals were completed in August.
