India and Guyana are likely to sign a memorandum of understanding to ramp up cooperation in the oil and gas sector, Bharrat Jagdeo, the Caribbean nation's vice president, told Indian media.
Jagdeo arrived in India last week, just a month after Guyana's President Mohamed Irfaan Ali visit to Delhi.
"We also explored the possibility of India examining the abundant resources that we've had outside of those that are on auction now," Jagdeo said.
The VP also hinted at 14 offshore oil blocks, which the country will auction to boost oil and gas exploration this year, and said that he expected India to invest in Guyana.
According to experts, Guyana is currently exploring bilateral partnerships to develop this part of the oil block, since it plans to take back 20% of the block from US oil giant ExxonMobil.
Guyana's Crude Potential
Guyana's energy potential has come into the limelight since 2015 after the discovery of crude oil reserves equivalent to more than 11 billion barrels.
Since, New Delhi has often stated that Guyana holds the capacity to be the next United Arab Emirates, one of the world's top ten oil producers.
According to Rystad Energy research, the Caribbean nation's government revenue from domestic production is on track to accelerate to $7.5 billion annually in 2030.
India’s Oil Consumption
India is the world's third-largest crude oil importer after the US and China.
According to OPEC's January 2023 report, India's total oil demand is expected to reach 5.41 million b/d in 2023. Currently, India is importing almost 82 percent of its fuel.