Guyana, India co-operation agreement to extend beyond oil exports --VP Jagdeo says

By Cassandra Khan

VICE-PRESIDENT, Dr. Bharrat Jagdeo has said that Guyana will soon sign a memorandum of understanding (MOU) with India to enhance co-operation in the energy sector beyond crude oil exports.

Dr. Jagdeo, during an interview with World is One News (WION) said: “So, now we’re trying to build the architecture for a broader look at the energy sector and enhance co-operation between Guyana and India.

So, we’re expecting shortly to sign a memorandum of understanding that would go beyond just the export of crude, but we’ll look at the energy sector and its development in its totality.”

In addition to the exportation of oil, he said that Guyana is looking to learn from India as well.

“So, that is why India’s assistance and its great technical skills are important. You have a lot of smart people here who can help us in defining the growth of the industry, but not just on oil, on the gas sector as we move to develop a gas policy and start utilising the gas resources and then in terms of environmental management, building capacity across the country,” Vice-President Jagdeo said.

Guyana’s intention is to develop the oil and gas sector in an orderly and sustainable manner, as the country by 2027, will be producing over a million barrels of oil per day.

“…maybe 1.2 million barrels per day, that’s a steep ramp up. That’s almost 20 per cent of India’s daily use,” Dr. Jagdeo related.

The aim as the country progresses, is to ensure that the sector develops in such a way that oil corporations carry their fair share of responsibility from an environmental perspective as well as a fiscal perspective, and that the industry is developed in an orderly manner.

The Vice-President related that considering India’s experience and expertise, Guyana is looking forward with great excitement to the development of a strong relationship with the Asian nation on energy-related matters.

Outside of energy, Dr. Jagdeo said too that Guyana is considering the purchase of defence capabilities from India to help preserve and protect its oil and gas sector, marine borders, and exclusive economic zones.

The Vice-President referenced a number of defence capabilities, primarily for peaceful purposes and to exert more power over maritime boundaries or exclusive economic zones.

“We have great relationships with our neighbours and where we’re not looking to fight a war. We’re a small country, with less than a million people. But India, particularly in the defence sector, has some really great capabilities and we’re looking to buy some of that capability to assist us with the task of exercising greater sovereignty over maritime boundaries or exclusive economic zones,” he said.

Dr. Jagdeo explained that there are major “leakages” from illegal fishing, and now that Guyana’s oil and gas sector is based primarily offshore, these assets must be protected.

“Similarly, air capability would allow us to better serve people who live in the vast hinterland of the country, where there are small communities so that’s why we want to work in that sector, too,” he said. He related that Guyanese authorities have already held discussions with key stakeholders who are supplying the goods and services, and the hope is to “wrap up some arrangements very soon.”