INDIA has joined a number of countries which have an active interest in obtaining an oil block in Guyana, said High Commissioner of India to Guyana, Venkatachalam Mahalingam.
“India is interested in having an oil block for exploration; there has been correspondence between both Governments, but the process will take its own time,” said the High Commissioner during a press conference at the Indian High Commission on Thursday.
India’s interest in having an oil block was shared with Minister of Natural Resources, Raphael Trotman and Minister of Foreign Affairs, Carl Greenidge during their visit to India in January.

The High Commissioner said officials of the Ministry of Oil and Gas of India met with the ministers to discuss several areas within the oil and gas industry.
Although he was not sure if a formal proposal was made to the Government of Guyana (GoG) to have an oil block here, Mahalingam said such a proposal is quite possible because their ministries often make direct contact with the relevant local ministries.
“It is quite possible that they would have written but we are not aware,” said the High Commissioner, adding that there is definitely an active interest from the Government of India to have an oil block.

Since ExxonMobil and its exploration partners, CNOOC Nexen and Hess discovered oil offshore Guyana, companies such as French oil giant Total and others have signaled their interest in exploring for oil.

ExxonMobil had in late February announced its seventh oil discovery offshore Guyana, following drilling at the Pacora-1 exploration well.
According to reports, ExxonMobil encountered approximately 65 feet (20 meters) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to a depth of 18,363 feet (5,597 meters) in 6,781 feet (2,067 meters) of water. Drilling commenced on Jan. 29, 2018.

“This latest discovery further increases our confidence in developing this key area of the Stabroek Block,” said Steve Greenlee, President of ExxonMobil Exploration Company. “Pacora will be developed in conjunction with the giant Payara field, and along with other phases, will help bring Guyana production to more than 500,000 barrels per day.”
Initially, ExxonMobil had projected daily output from 2020 at 120,000 barrels per day. Guyana is entitled to 2 percent royalty and 12.5 percent of the overall production, which amounts to half of the oil profits.
The Pacora-1 well is located approximately four miles west of the Payara-1 well, and follows previous discoveries on the Stabroek Block at Liza, Payara, Liza Deep, Snoek, Turbot and Ranger.

“Guyana is a new member of the oil club and the last time when the foreign affairs minister visited India, the officials said they can help in areas of oil and gas but the Government of Guyana has to come and say which area they would like to have cooperation,” said Mahalingam. The High Commissioner pointed out that India’s commitment was also conveyed to President David Granger during his recent visit to India where he met with Indian Prime Minister Narendra Modi and other top Government officials of India.
India had also signaled its interest in buying oil from Guyana when production starts in 2020. The country purchases oil from Latin America and South America.
Prime Minister Modi will also be visiting Guyana this year to conduct more discussions pertaining to bilateral relations with the GoG.

“2018 has been a wonderful year so far for India-Guyana relations; India’s Prime Minister will visit sometime in November and December; so it will be a historical year between the two countries,” said Mahalingam.

Prime Minister Modi had told President Granger that India is willing to do whatever it can to support Guyana’s development and pointed out that there are many areas for cooperation, particularly in the sugar and oil sectors.
During the meeting, the two leaders reviewed the scale of Guyana-India relations and agreed to continue discussions when Prime Minister Modi visits Guyana later this year.