Jagdeo heading to India to tie up one-on-one oil deals

Jan 16, 2023 News

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Kaieteur News – Vice President, Bharrat Jagdeo is soon expected to leave Guyana to tie up agreements with the Government of India for cooperation in the blossoming local oil and gas industry.

President Irfaan Ali along with a high level team were in India for a seven-day trip and entered into several new agreements with the Indian state for collaboration in other sectors, inclusive of manufacturing and power generation among others.

It is the VP however, who manages the Petroleum sector that will visit India to tie up related arrangements.

Jagdeo in announcing the auction of 14 of Guyana’s oil blocks back in November last year had said the process, “is consistent with the promise we made while in Opposition that future blocks will be given out only through auction. We are not going to do this directly, except if it’s a state-to-state engagement with the government participating.”

On Thursday last, the Guyanese President met with India’s Minister of Petroleum and Natural Gas and Housing and Urban Affairs, the Honourable Shri Hardeep S Puri in Delhi, India, where the leaders discussed “direct Government-to-Government cooperation across the oil and gas spectrum, including increased long-term offtake, participation in exploration and production activities in Guyana, technical cooperation in the midstream and downstream sectors and capacity building, as well as the synergies which exist between the two countries,” a release from the Head of State detailed.

It was also noted that the two countries have agreed to set up technical teams to advance these discussions.

Reuters reported that Ali when asked if Guyana would offer blocks to Indian companies through direct negotiations said, “Apart from the auction, we are discussing Government-to-Government partnership in a number of areas including exploration.”

India’s Ministry of Petroleum and Natural Gas and Housing and Urban Affairs reported that the discussions between Guyana’s President and the subject Minister there, were fruitful. According to the Indian Government, “The contours of future cooperation would be finalized during the visit of Vice President of Guyana, Mr. Bharrat Jagdeo to India in February 2023.”

For several years, this newspaper has been at the forefront of calls for there to be a thorough, independent investigation into the award of two blocks – Kaieteur and Canje – since several industry stakeholders who examined the matter, concluded that they were awarded under suspicious circumstances.

The Canje Block for instance was awarded by the Donald Ramotar administration on March 4, 2015, days before that year’s General and Regional Elections, to a local company, Mid-Atlantic Oil and Gas. Similarly, the Kaieteur Block was awarded on April 28, 2015, just two weeks before the elections, and like the Canje Block, it was done based on the advice of former Minister of Natural Resources, Robert Persaud.

Successive Governments of Guyana have come under heavy criticisms for their management of the country’s nascent oil and gas sector. From the giving away of oil blocks to the signing of a lopsided contract with ExxonMobil, citizens do not feel they will ever benefit fully from the resources.

One significant area that has come under scrutiny is the awarding of oil blocks – something which industry experts said should have been put on a public auction in the first place. It took the country more than seven years after it discovered oil, to move towards its first auction.

But even now that an auction has been launched, special blocks have been reserved for Government to engage in bilateral agreements.

In October last year, President Ali related that his Government has set aside certain oil blocks which would be used for Government-to-Government partnerships.

The Head of State made the disclosure during a press conference with British High Commissioner, Jane Miller.  Ali refused to divulge further details on which specific blocks were set aside as well as what special purpose vehicle would be used to represent the State’s interests in such matters. He did pledge however to distill such details at the appropriate time.

The President said this development followed engagements that were had earlier in the year with former UK Prime Minister, Boris Johnson as regards energy security.

Ali said, “The specific discussion I had with Boris was in relation to energy security for the UK. As you know, we have some blocks that we are going to auction off very soon. And we have some blocks that are set aside for what is termed Government to Government partnerships. We are looking at all our strategic partners with these blocks.”

The President added, “We also have some natural gas fields. We have not completed the national gas strategy as yet but in that strategy, more opportunities will be opened up.”

Ali said over all that his intention is to ensure the UK is able to play a role in Guyana’s energy transformation while continuing with efforts that will place the new oil producing State as a global leader on climate change, energy and food security.

It was later announced that the UK lifted its visa requirements for Guyanese travellers.

 

 

 

 

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• Ali, Cooperation, India, Jagdeo, Oil blocks

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