 "India and Guyana ties: How historical connect fuels energy partnership")
In a historic moment that underscores India’s evolving diplomatic landscape, Prime Minister Narendra Modi was conferred the highest civilian award, ‘The Order of Excellence’, by Guyanese President Mohamed Irfaan Ali on Thursday. This unprecedented recognition marks a pivotal chapter in bilateral relations—Modi being the first Indian Prime Minister to visit Guyana in 56 years and only the fourth foreigner to receive this prestigious accolade.
Modi’s latest visit highlights the efforts undertaken by the South Block to engage with Latin America, henceforth the less explored region. For New Delhi, this region, and particularly Guyana, has started becoming increasingly important. Guyana’s GDP is growing at the rate of 34 per cent in 2024. In the past five years, its GDP has grown from $5.47 billion to $21.178 billion with an impressive inflation rate of just 4.5 per cent.
The exploration of the new oil fields and the production of oil in Guyana are driving this stupendous growth in the economy. First discovered in 2015, the petroleum started giving fruits to Guyana by the year 2020. As of December 2023, Guyana was producing 6.45 lakh barrels of oil per day, which is expected to grow to 9 lakh barrels per day.
India has also imported $148 million worth of oil from Guyana in 2021-22. This number is expected to multiply geometrically. Guyana’s offshore Stabroek Block, operated by ExxonMil, holds approximately 11 billion barrels of proven oil reserves. For India, a nation perpetually seeking energy security, this represents more than just petroleum—it’s a geopolitical lifeline. The reserves promise stable, predictable supply chains away from volatile Middle Eastern markets.
In February this year, Vickram Bharrat, Guyana’s Minister of Natural Resources, met Hardeep Singh Puri, India’s Minister of Petroleum and Natural Gas, during India Energy Week in Goa. Puri pressed for the picking up of blocks through negotiation rather than bidding. ONGC Videsh has also explored opportunities in the bids of 14 exploration blocks. Thus, the stakes are high for India in this country, and the consistent efforts for engagements are taken. However, it is to be mentioned that Guyana is a part of the Belt and Road Initiative by China. Beijing has been developing ports and infrastructure and taking benefits from oil from Guyana. India is late into the race but making efforts to catch up.
Impact Shorts
More ShortsThis exploration of new oil fields is not free from the conflict with jealous neighbours. Guyana’s neighbouring country, Venezuela, whose economy is in rambles, claims Stabroek Block as its territory. Essequibo, another oil-rich region covering 2/3rd of Guyana’s territory, is also claimed by Venezuela. As Venezuela’s economy declines and Guyana’s increases, there is potential for territorial conflict.
India has earlier delivered two Dornier-228 aircraft to the Guyana Defence Force. It has also trained Guyana’s defence personnel under the Indian Technical and Economic Cooperation Programme. The probability of the conflict can serve as a selling point for India’s indigenous defence products in this oil-rich but less modernised region.
To drive India’s relations with Guyana, the diaspora community can be a key. Guyana presently has 340,000 Indo-Guyanese people, who consist of almost 40 per cent of the total population. With key political figures like President Mohamed Irfaan Ali, Vice President Bharrat Jagdeo, and Minister Vickram Bharrat tracing Indian roots, the cultural connect transcends diplomatic formalities. Guyanese President was also awarded the Pravasi Bharatiya Samman Award in 2023.
Indo-Guyanese relations, rooted in history, require enhanced cooperation and strategic understanding to unlock mutual benefits.
The writer is an independent columnist who writes on international relations, and socio-political affairs. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views.
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