India, the world’s 3rd largest oil importer, is looking to bolster its energy security with a plan in the works to source most of Guyana’s oil share from its oilfields at preferential rates through long-term contracts, 2 people aware of the development said.
Long-term supply contracts offer stability amid volatile energy markets. Exxon Mobil, the leading oil producer in Guyana, plans to boost the nation’s production capacity to 1.2 million barrels a day by 2027.
As the Guyana government’s share accounts for about 11 persent of production, India seeks to purchase most of this portion through long-term contracts at preferential rates to ensure a steady supply from one of the world’s most significant recent oil discoveries.
As the Guyana government’s share accounts for about 11 persent of production, India seeks to purchase most of this portion through long-term contracts at preferential rates to ensure a steady supply from one of the world’s most significant recent oil discoveries.
India, which consumes 5 million barrels per day, has been eyeing the South American nation’s share of oil from its fields to meet its energy needs. In July 2021, Indian Oil Corp. Ltd, the nation’s largest refiner, bought its 1st crude oil cargo from Guyana to conduct a successful trial run and assess the feasibility of refining the oil.
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