India has expressed interest in establishing a multi-year agreement to buy oil from Guyana and is considering acquiring interests in the exploration regions of the South American country.
Speaking during the India Energy Week in Goa on Thursday, Guyanese Minister for Natural Resources Vickram Bharrat said a decision regarding a long-term crude oil deal with India will be made at a later point in time.
He emphasized that approval from Guyana's cabinet would be necessary for any such agreement with India.
Following discussions with Indian Minister of Oil Hardeep Singh Puri, Bharrat emphasized that Indian firms are keen on acquiring interests in Guyana's exploration sector through negotiations rather than participating in a bidding process.
Notably, Indian companies abstained from participating in Guyana's recent bidding round for oil and gas.
"Our preference (for offering oil blocks for exploration) will be through bidding, and if there is any interest in any particular block, we are willing to negotiate and enter an agreement," Bharrat noted.
Regarding the Stabroek block, he mentioned that Guyana is open to negotiating stakes only in the relinquished area.
The nation is considering initiating an exploration bidding round later this year for the areas relinquished in Stabroek and other blocks.
The minister stated, "We have some relinquished acreage from Stabroek and other blocks, so it is likely that we will conduct a bidding round, possibly later this year."
Stabroek, a consortium led by ExxonMobil (XOM), which oversees offshore production in Guyana, was obligated last year to return 20 percent of unexplored acres under the terms of the original 2016 production contract.
The undersea Starbroek field lies off the coast of the western Essequibo region, over which neighbouring Venezuela recently formally declared sovereignty in the latest escalation of a territorial dispute dating back to the 19th century.