On Friday, GEORGETOWN, Guyana, CMC – Vice President Dr. Bharrat Jagdeo clarified that the Memorandum of Understanding (MoU) to be signed between Guyana and India extends beyond the utilization of oil and gas resources, adding that there is no agreement to sell oil to India at this time.
However, the vice president explained that should such an agreement materialize. It will have to be competitive and benefit both countries.
“The MoU will deal with several issues. It will explore the possibility of trading in crude oil, that is, the sale of crude oil, but we agreed that this has to follow market conditions. We will cooperate in all of these areas. But, when it comes to specific initiatives, for example, if they want to buy crude, they will make a specific offer, and then we will assess that offer on its merit. Similarly, if they prefer to engage in a bilateral discussion on exploration and development, a specific proposal will be made, and that will be done,” he told journalists on Friday.
The MoU, currently awaiting approval from India’s Cabinet, deals with strengthening Guyana’s regulatory capacity and sharing expertise in building the staff’s power at the Ministry of Natural Resources.
“India has an enormous capacity in many areas, and we hope to benefit from their expertise in strengthening the regulatory regime here for the oil and gas sector,” Jagdeo said.
Jagdeo also disclosed that India’s Foreign Minister, Subrahmanyam Jaishankar, is expected to visit Guyana to solidify this partnership between the two countries.
His recent visit saw discussions centered on a framework agreement, fostering cooperation in various sectors, including petroleum and natural gas, agriculture, agro-processing, education, healthcare, capacity building, ICT, renewable energy, and climate change.
The vice president also delivered the inaugural address at the World Development Summit, where he spoke extensively about Guyana’s approach to the forestry sector and how these resources will be utilized to tackle the issue of adaptation in indigenous communities.
Jagdeo reaffirmed that the country would not rely on financial support to address adaptation issues. The government will take a sustainable approach, responsibly exploiting its natural resources to mitigate the effects. This entails funneling funds into strengthening, building, and maintaining the infrastructure to foster sustainability in the country.
He pointed out, “In our case, money earned through the forestry sector and the oil and gas industry would go towards climate-proofing our economy and safeguarding our people. That means billions of dollars on managing water, protecting our coastal zone, and moving to crops that are climate resilient. Since we can’t stop these events, we must adapt to them.”
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