A large number of people of Indian origin live in Guyana, a country on the northern coast of South America. Nearly 43.5% (or 0.32 million) of the total population of this country are of Indian origin whose ancestors were brought to Guyana by the colonial British rulers as slaves (under indenture contracts from 1838 until the end of the system in 1917). The visit of Narendra Modi to Georgetown on November 19, 2024 on a three-day trip was the first by an Indian Prime Minister in 56 years. Dr Mohamed Irfaan Ali, the President of Guyana, and some of his ministers were present at the airport to receive the Indian PM. Political analysts believe that the historic visit of Prime Minister Modi to Guyana shall be a game changer as far as diplomacy is concerned.

According to analysts, Modi’s visit to Guyana was aimed at strengthening the Oil Diplomacy. This South American country discovered huge reserves of mineral oil in 2015 and the discovery has boosted its economy since then. Currently, Venezuela is the top oil producing country in South America. Experts have claimed that Guyana would replace Venezuela in terms of oil production by the end of 2026! Guyana may also emerge as the top global exporter of mineral oil, as it has all the potential to emerge as one of the major oil producing nations outside the Organisation of Petroleum Exporting Countries (OPEC). Guyana recorded an economic growth rate of 30% in 2020 and 2021. However, it reached 62% in 2022 before coming down to 33% in 2023.

Experts are of the opinion that the South American country has 11 billion barrels of oil beneath its surface. In other words, Guyana owns 18% of the world’s mineral oil. Since 2021, Georgetown has been exporting 0.1 million barrels of oil per day! According to sources close to the Guyanese government, the country’s oil exports are expected to grow nearly nine-fold in the next couple of years as it could be able to sell 0.9 million barrels of oil per day in 2027!

On the other hand, India is the third largest oil importer of the world. Hence, the South Asian nation has been trying to strike an oil deal with Guyana for a long time. The Narendra Modi Administration in New Delhi recently expressed its desire to get a share of the liquid gold of the only English-speaking country in South America. Hardeep Singh Puri, the Indian Minister of Petroleum and Natural Gas, held a meeting with his Guyanese counterpart Vickram Bharrat to discuss this particular issue in February 2024. Later, Bharrat stressed: “We will make a decision at some point in time on crude oil sales to India on the basis of a long-term deal.“

Indian oil companies, too, are interested in petroleum exploration in Guyana. Although the Government of Guyana plans to hold an auction in this regard, India wants to get this opportunity through negotiation, instead of auction. In such a situation, the Indian Ministry of Petroleum and Natural Gas signed a Memorandum of Understanding (MoU) with the Guyanese Ministry of Natural Resources. On the basis of the MoU, Indian oil companies would explore and refine crude oil in Guyana.

Guyana is all set to be one of India’s biggest defence markets in the coming days, as well! New Delhi recently gifted two Dornier-228 twin-turboprop utility aircraft to Georgetown. The aircraft, manufactured by Hindustan Aeronautics Limited (HAL), can be used for a variety of missions, including maritime patrol, search and rescue, and medical evacuation. Guyana, too, has shown interest in acquiring defence equipment from India. Indian pharmaceutical, biofuel, energy and alloy-manufacturing companies are also interested in exploring business opportunities in the South American country. New Delhi recently helped Georgetown to build a cricket stadium, apart from providing financial support to build 50 solar-powered traffic lights, sewage pumps and a national Information Technology centre. It may be noted that India had sent vaccines to Guyana during the COVID-19 Pandemic.

Interestingly, China, too, has started investing a huge amount in Guyana. Currently, the Asian Giant is implementing its Belt and Road there. India, too, has sanctioned nearly USD 1.9 million for the infrastructural development of Georgetown. The two Asian neighbours are trying their best to increase their influence in Guyana.

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Published by Koushik Das

Koushik Das (born on May 16, 1976 in Kolkata) is a career journalist. Based in the Indian capital of New Delhi, Koushik writes mainly about foreign policies and current geopolitical issues, and rarely about other topics. His own political ideas are highly influenced by Antonio Gramsci, Louis Althusser, Michel Foucault, Michael Oakeshott and others. English philosopher and political theorist Oakeshott (Dec 11, 1901-Dec 19, 1990) says that “in political activity, men sail a boundless and bottomless sea. There is neither harbour for shelter nor floor for anchorage, neither starting-place, nor appointed destination. But we have to keep afloat”. (Rationalism in Politics, 1962) As a student of Political Science, Koushik loves to share his views on issues, which have great impacts on his thought process (and also on India, South Asia and of course on the global community), with his readers through his website – Boundless Ocean of Politics. By doing so, he tries to keep himself afloat. You will find some of his articles in https://inserbia.info/today/ (https://inserbia.info/today/author/kou_das13_i/), as he has been trying to assess the global geopolitics since 2003. You can also mail him at kousdas@gmail.com View all posts by Koushik Das