Govt okays hydrocarbons pact with Guyana; funding for earth sciences
Guyana has rapidly become a key new player on global energy markets after the discovery of an estimated 11 billion barrels of oil reserves off Guyana’s coast since 2015
The Union cabinet approved a memorandum of understanding between India and Guyana to boost cooperation on sourcing of crude oil, refining, natural gas and expanding space for Indian companies in Guyana’s exploration and production sector.
This comes as the small south American nation has rapidly become a key new player on global energy markets after the discovery of an estimated 11 billion barrels of oil reserves off Guyana’s coast since 2015.
Mint had earlier reported that India was tracking this development closely as the disruption of oil imports from Iran and Venezuela due to American sanctions.
As the world’s third largest energy consumer, India has been keen to develop diversified sources of energy imports. Guyana is expected to produce close to 1 million barrels of oil per day by 2027, which could make it a key supplier for India. The two nations also share a close political relationship, aided by the presence of a large Indian-origin diaspora in Guyana.
Guyana’s vice president Bharrat Jagdeo told Mint in 2023 that the country is keen to have greater Indian participation in developing its nascent energy capacities. The agreement will remain in force for a period of five years.
“We also explored the possibility of India examining the abundant resources that we’ve had outside of those that are on auction now,” Jagdeo told Mint in early 2023. He called for a greater Indian presence in the Stabroek offshore oil block, which is currently operated by US energy major ExxonMobil.
“Next year, ExxonMobil will have to give up 20% of their holdings. So, all of those will be available for some form of bilateral engagement, where we can actually see joint production or exploration related activities,” Jagdeo had said.
Besides this, the cabinet also approved a plan for Isro to develop a small satellite with Mauritius. India’s domestic space industry is also expected to participate in the project.
It also gave the green light for America’s official development assistance agency, USAID, to support the Indian Railways’ goal of net zero emissions target. Both sides will help the railways develop long term energy planning, clean procurement and an energy efficiency policy.
The cabinet also approved the ₹4,797 crore PRITHVI scheme, which aims to channel funding into earth sciences, polar research and atmospheric sciences. It is expected to help the ministry of earth sciences develop science-based services related to weather, climate, seismology and natural hazards. These services can help minimize the human and material damage from natural disasters.
“These services include weather forecasts (both on land and in the Oceans) and warnings for various natural disasters like tropical cyclones, storm surge, floods, heat waves, thunderstorm and lightning; alerts for tsunamis and monitoring of earthquakes, etc. The services provided by the ministry are being effectively used by different agencies and state governments for saving human lives and minimizing damages to the properties due to natural disasters,” explains a government statement released after the cabinet meeting on Friday.
The cabinet also approved a proposal to designate Ayodhya airport as an international airport and named it “Maharishi Valmiki International Airport, Ayodhyadham”.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Business NewsNewsGovt okays hydrocarbons pact with Guyana; funding for earth sciences
First Published:5 Jan 2024, 06:08 PM IST
- Top Gainers
- Top Losers
- 52 Week High