India in talks with Guyana for long-term crude supply

GEORGETOWN/NEW DELHI : India, the world’s third-largest crude consumer and importer, has approached Guyana’s government about a possible long-term deal to buy the South American country’s oil, a Guyanese official said.

India has expressed interest in buying one of the 1 million-barrel cargoes Guyana’s government is entitled to in order to test the crude in its refineries, according to Guyana’s Natural Resources Minister Vickram Bharrat. If the crude is compatible, the parties could begin talks on a long-term arrangement.

India’s oil demand has risen by 25% in the last seven years, more than any other country, and officials there have pledged to use the country’s position as a leading purchaser as a “weapon” in an effort to keep prices low.