India seeks energy security from Guyana and its vast oil deposits

India’s Modi seeks energy security from Guyana and its vast oil deposits

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Hundreds of Indian descendants crowded the National Cultural Center of Georgetown to greet India’s Prime Minister Narendra Modi on the last day of his two-day visit to Guyana. (AP Video by Matias Delacroix)

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India’s Prime Minister Narendra Modi gestures at the end of an event with Guayana’s Indian community at the National Cultural Center in Georgetown, Guyana, Thursday, Nov. 21, 2024. (AP Photo/Matias Delacroix)

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India’s Prime Minister Narendra Modi addresses members of Parliament, in Georgetown, Guyana, Thursday, Nov. 21, 2024. (AP Photo/Matias Delacroix)

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India’s Prime Minister Narendra Modi arrives to Parliament in Georgetown, Guyana, Thursday, Nov. 21, 2024. (AP Photo/Matias Delacroix)

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Indian Prime Minister Narendra Modi arrives to meet with Guyana’s Indian community at the National Cultural Center in Georgetown, Guyana, Thursday, Nov. 21, 2024. (AP Photo/Matias Delacroix)

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India’s Prime Minister Narendra Modi waves as he arrives to Parliament in Georgetown, Guyana, Thursday, Nov. 21, 2024. (AP Photo/Matias Delacroix)

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India’s Prime Minister Narendra Modi greets students as he arrives to Parliament in Georgetown, Guyana, Thursday, Nov. 21, 2024. (AP Photo/Matias Delacroix)

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Members of Guayana’s Indian community line up for an event with India’s Prime Minister Narendra Modi at the National Cultural Center in Georgetown, Guyana, Thursday, Nov. 21, 2024. (AP Photo/Matias Delacroix)

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Members of Guayana’s Indian community line up to meet with Indian Prime Minister Narendra Modi at the National Cultural Center in Georgetown, Guyana, Thursday, Nov. 21, 2024. (AP Photo/Matias Delacroix)

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India’s Prime Minister Narendra Modi addresses members of Parliament, in Georgetown, Guyana, Thursday, Nov. 21, 2024. (AP Photo/Matias Delacroix)

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India’s Prime Minister Narendra Modi addresses members of Parliament, in Georgetown, Guyana, Thursday, Nov. 21, 2024. (AP Photo/Matias Delacroix)

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India’s Prime Minister Narendra Modi addresses members of Parliament, in Georgetown, Guyana, Thursday, Nov. 21, 2024. (AP Photo/Matias Delacroix)

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Indian Prime Minister Narendra Modi addresses Guayana’s Indian community during an event at the National Cultural Center in Georgetown, Guyana, Thursday, Nov. 21, 2024. (AP Photo/Matias Delacroix)

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India’s Prime Minister Narendra Modi, center, waves at the end of an event with Guyana’s Indian community at the National Cultural Center in Georgetown, Guyana, Thursday, Nov. 21, 2024. (AP Photo/Matias Delacroix)

By BERT WILKINSON

GEORGETOWN, Guyana (AP) — Indian Prime Minister Narendra Modi said Thursday during a visit to Guyana that his government views the South American country as key to its energy security.

Modi spoke a day after his foreign minister said India is interested in buying up to two million barrels of crude from the oil-producing nation where vast deposits of oil and gas were found offshore nearly a decade ago.

Addressing a special sitting of Parliament at the end of his two-day trip, Modi said he views Guyana as an important energy source and that he plans to encourage large Indian businesses to invest in the country.

Guyana produces about 650,000 barrels a day of sweet, light crude oil from three oil fields, with production expected to ramp up to more than one million barrels daily, with production at three more oilfields slated to start in the next three years.

On Wednesday, External Affairs Minister Jaideep Mazumdar said India was not necessarily disappointed about not being able to seal a long-term oil sale deal with Guyana, saying talks will continue. He said such a deal would ensure “greater predictability.”

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The two sides did sign a memorandum of understanding on Wednesday to strengthen cooperation for hydrocarbon trade and petroleum products.

Guyanese Natural Resources Minister Vickram Bharrat told reporters that while Guyana is willing to supply India with a large amount of crude, the matter is not simple because ExxonMobil, the main operator in Guyana’s offshore oil production, would have to be consulted and agree to such an arrangement.

“We know Exxon has to do some amount of changes to their lifting schedule and logistics because their preference is for the very large vessels that can accommodate two million barrels mainly because of distance and cost,” Bharrat said.

He added that Guyana prefers that Indian companies bid for oil blocks and that negotiations could occur if a bid is submitted.

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