New Delhi, In a strategic move to diversify its oil import sources, India has approved the signing of a 5-year Memorandum of Understanding (MoU) with Guyana in the hydrocarbon sector. The proposed agreement encompasses the sourcing of crude oil from Guyana, participation of Indian companies in exploration and production, and collaboration in crude oil refining, as per a government statement.
India, the world’s third-largest crude consumer and importer, has engaged in discussions with Guyana for over two years regarding a potential bilateral oil agreement. Notably, last year, Guyana declined India’s request for discounted crude oil purchases during trade talks.
The MoU, with an initial period of five years, includes provisions for automatic renewal upon mutual agreement between the two nations. India aims to strengthen its energy ties and enhance negotiation feasibility for diversified sources.
