India procures one million barrels of crude oil from Guyana

India has procured the first shipment of one million barrels of 'Liza light sweet' crude oil from Guyana, in a significant move marking diversification of its sourcing of petroleum products.

The Indian High Commission in the South American nation said the consignment was lifted for the Indian Oil Corp Ltd from Liza Destiny FPSO and that the purchase reflected the enhancement of bilateral ties.

"Concrete step in Indo-Guyana economic relations, 1st 1 million barrels of Guyana Liza crude for @IndianOilcl loaded from FPSO Liza Destiny," it tweeted, describing the move as an important step in the diversification of crude sourcing by India as well as a reflection of "future roadmap".

India has been majorly sourcing crude oil from the Gulf countries.

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It is learnt that the consignment from Guyana may reach India's Paradip port on August 6.

It was the first purchase of Guyanese crude oil from the government of Guyana's share of oil by an Indian PSU refiner.

The High Commission said the procurement is a reflection of enhanced bilateral cooperation between India and Guyana.

It is learnt that the collaboration could potentially expand and could include India acquiring oil blocks, long-term agreement for sourcing crude from Guyana as well as training and capacity building in oil and gas sectors.

IOCL is the first Indian PSU to buy oil from Guyana, but HPCL-Mittal Energy Limited, a joint venture between State-run Hindustan Petroleum Corporation Ltd (HPCL) and Indian steel tycoon LN Mittal, had also bought one million barrels of oil from Guyana in March 2021.

There is a view that Guyana's Liza oil -- “light sweet crude” -- is well suited for Indian refineries.

India considered such purchase arrangements helpful to both sides as the governments are able to save on incurring costs on commission and marketing fees to third-party agencies, it is learnt.