India still eyeing oil deal with Guyana – High Commissioner

Though India has had its eyes set on Guyana’s burgeoning oil and gas sector for several years, there is yet to be any concrete deal struck between the two longstanding bilateral partners – but the energy-hungry country is positive that this will change as production of the light sweet crude offshore ramps up.

There is currently an estimated 11.6 billion barrels of oil equivalent in Guyana’s prolific Stabroek Block, where United States (US) oil major ExxonMobil, along with its co-venturers, has been producing oil since 2019. Exploration activities are also ongoing in other oil blocks offshore Guyana.
Production was increased back in August with the start-up of the Yellowtail Project – the fourth oil development in the Stabroek Block. Yellowtail’s ONE GUYANA floating production storage and offloading (FPSO) vessel joins the Destiny, Unity, and Prosperity FPSOs and is expected to bring the total installed capacity in Guyana to above 900,000 barrels of oil per day by this year’s end.
This is expected to further increase with the start-up of the fifth and sixth approved projects, Uaru in 2026 and Whiptail in 2027, respectively. In fact, ExxonMobil Guyana expects to have a total production capacity of some 1.7 million oil equivalent barrels per day from eight developments in the Stabroek Block by 2030.
India, the world’s third-largest oil consumer and importer as well as one of the biggest oil refiners, has been looking to diversify its crude sources.
According to the Indian High Commissioner to Guyana, Dr Amit Telang, this marked increase in production is an encouraging sign for a possible trade deal between the two countries.
“So, once the exploration increases and more and more crude is available, I’m sure Guyana will also look at other partners for exporting it, and at that time, India can certainly become one of the partners for that,” the diplomat said in a recent interview with the Guyana Times.

Cooperation agreement
Back in 2024, the Indian Government had indicated that it is pushing for a long-term partnership with Guyana as the two countries ink a cooperation agreement that opens up a host of opportunities for collaboration.
As part of the historic visit of India’s Prime Minister, Narendra Modi, to Guyana in November 2024, several bilateral agreements were signed between the two countries in a number of areas, including a Memorandum of Understanding (MoU) for Cooperation in the Hydrocarbon Sector.
This MoU established a framework for Guyana and India to enhance bilateral collaboration in the hydrocarbon sector. In fact, it encompasses investment promotion, technology transfer, joint studies, and capacity building across the entire hydrocarbon value chain.
During remarks at the State House in Georgetown, Prime Minister Modi had highlighted the importance of Guyana’s oil and gas sector to India’s high-demand energy needs.
“Guyana will play an important role in India’s energy security,” PM Modi stated.
It was further noted that India plans to move forward as “natural partners” with Guyana to advance energy cooperation between the two nations. In this regard, the Indian Prime Minister disclosed that a roadmap for a long-term partnership will be created and that the energy pact will be further strengthened on this front.
Currently, the energy-hungry India, which imports nearly 85 per cent to 90 per cent of its crude oil, has been seeking a multi-year deal. As a result, the Cabinet in New Delhi, back in January, had approved the signing of a five-year MoU with Guyana that covers the complete value chain of the hydrocarbon sector, including sourcing of crude oil from Guyana, participation of Indian companies in the Exploration and Production (E&P) sector of Guyana [and] cooperation in the areas of crude oil refining.

Purchase of Guyana’s crude
Back in 2021, it was reported that India bought its first cargo of ‘light sweet crude’ from Guyana. That cargo was bought by HPCL-Mittal Energy Ltd (HMEL), a joint venture between state-run Hindustan Petroleum Corp and Indian steel tycoon L.N. Mittal. HMEL operated a 226,000-barrel-per-day refinery in Bathinda, Punjab.
In fact, India has already bought some US$149 million of Guyana’s crude between 2021 and 2022.
Just last week, however, it was reported by Reuters that two Indian refiners have bought 4 million barrels of Guyanese crude oil from ExxonMobil that is expected to be delivered by the end of 2025 or in early 2026.
According to the international news agency, Indian Oil Corp, the country’s largest refiner by capacity, has bought 2 million barrels of Golden Arrowhead (GAH) crude – its first purchase of the grade.
It was reported that another refiner, Hindustan Petroleum Corp, has bought 2 million barrels of Liza and Unity Gold crude, also for the first time.
Days prior to this report, High Commissioner Telang had explained to this newspaper there has not been much crude trade between the two countries due to various challenges, including logistics.
“One of the challenges that our Indian companies have consistently flagged is they probably need bigger-sized containers for export. Because a smaller import would not make it financially viable.  So, these are the kind of technical or logistical challenges that our companies face, [but] we are trying to address that,” the diplomat noted.
Nevertheless, Dr Telang stated that the MoU between the two countries has opened new opportunities for cooperation between Guyana and India. In fact, several companies are currently working on the development of the Guyana Government’s model Gas-to-Energy (GtE) project at Wales, West Bank Demerara.

Block interest
Meanwhile, India had previously expressed interest in exploration and production activities in an oil block offshore Guyana – something which Dr Telang says is still there.
He related that, “Interest is always there, but the financial viability, the technical assessment, all these things the companies have to do… So, I would say that when it comes to interest, it’s always there, but converting that interest into something tangible on the ground – that may take some time.”
The Government of Guyana recently concluded its first competitive bidding round for new offshore oil blocks, attracting a range of international interest.
Then Secretary (East) of India’s Ministry of External Affairs, Jaideep Mazumdar, had told reporters in Georgetown during a press briefing on the side-lines of Prime Minister Modi’s historic state visit last year that Guyana’s proven and estimated oil and gas reserves are very promising.
“We would be interested in participating in the exploration and production phase as well. Our oil companies are certainly looking at this, and if they do get an opportunity, they would be willing to invest, as we have invested in many countries of the world far from the shores of India,” the Indian official told reporters at the press conference.
In the past, local officials had stated that Indian companies were interested in acquiring stakes in Guyana’s budding petroleum sector through negotiations rather than the bidding process – a route which the Guyanese Government has opted to use in expanding offshore developments to promote transparency and accountability.
When it comes to a long-term oil purchase agreement, Mazumdar explained that it would be up to the Guyana Government to decide how this is done, but he reiterated India’s preference for a Government-to-Government (G2G) arrangement.