The Union Cabinet, led by Prime Minister Shri Narendra Modi, has granted approval for the signing of a Memorandum of Understanding (MoU) between India and the Republic of Guyana in the hydrocarbon sector. This comprehensive agreement covers various aspects of the hydrocarbon value chain, including crude oil sourcing, Indian companies’ participation in Guyana’s Exploration and Production (E&P) sector, collaboration in refining, capacity building, bilateral trade strengthening, and cooperation in clean energy, including biofuels and renewables.

With this MoU, India aims to diversify its crude oil sources, enhance energy security, and foster the vision of “Aatmanirbhar Bharat.” The collaboration is expected to strengthen bilateral trade, encourage mutual investment, and provide Indian companies with opportunities in Guyana’s E&P sector. Guyana’s recent significant discoveries, amounting to 18% of global Oil & Gas discoveries, make it an essential partner in India’s efforts to secure energy access and affordability.

The MoU, set to be in force for five years and automatically renewed thereafter, signifies the renewed momentum in the bilateral relationship between India and Guyana in the hydrocarbon sector.