India approves MoU with Guyana for hydrocarbon cooperation

The Indian cabinet has approved the signing of a memorandum of understanding (MoU) between India and Guyana to enhance cooperation in the hydrocarbon sector, the government announced on January 5.

The proposed MoU covers the complete value chain of the hydrocarbon sector including sourcing of crude oil from Guyana, participation of Indian companies in the exploration and production (E&P) sector of Guyana, and cooperation in the areas of crude oil refining.

The two countries also plan to strengthen collaboration in the natural gas sector, cooperation in developing regulatory policy framework in the oil and gas sector in Guyana; developing clean energy including biofuels as well as renewables sector including solar energy.

“The MoU on cooperation in hydrocarbon sector with Guyana will strengthen bilateral trade, foster investment in each other countries and help diversifying source of crude oil, thus augmenting the energy and supply security of the country,” Indian prime minister Narendra Modi’s office said.

This MoU will remain in force for five years.