EIL plans to supply mission administration and consultancy companies for the proposed refinery.
Guyana had first give you a young for a refinery with a capability of 30,000 barrels per day. Nonetheless, the plan was shelved as a result of the capability was discovered to be unviable.
“The present consideration of the authorities is to develop a refinery of 1.5 million-2 million tonne every year (mtpa) capability,” an Indian authorities official mentioned, requesting anonymity.
Developing a 1.5mtpa refinery would price about ₹7,000 crore, with the PMC price 2% of the general capital expenditure. State-run EIL has performed a key position in creating refineries globally, together with in Mongolia and Nigeria, and not too long ago gained a contract to broaden Africa’s largest refinery—Dangote in Nigeria.
“We’re conscious they (Guyana) put out a young for funding with the refinery… We might be eager to do a PMC for that, given our experience. Our group is there… We’re in contact with the management in Guyana for favourably us,” Shukla mentioned. “We are going to be sure that we’re there of their reckoning in a really severe method… that they take us on board, contemplating the wonderful work that we’ve helped them with.”
EIL’s proposed mission administration and guide (PMC) position for the deliberate refinery assistance will improve India’s broader power ties with Guyana, which has reserves of over 11 billion barrels of oil equal, thought-about probably the most vital international oil discovery of the previous decade.
India, the world’s third-largest oil importer, began buying oil from Guyana within the present fiscal and purchased about 210,000 barrels per day in January. The nation is trying to supply virtually all of Guyana’s share from its oilfields at preferential charges by long-term contracts. An ExxonMobil-led consortium has the rights to discover and produce oil in Guyana.
EIL’s tasks
EIL could have an edge as a result of it already has a presence in Guyana and has supplied consultancy companies to state-run Guyana Energy and Gasoline Inc. for an built-in pure gasoline liquids plant and a 300MW mixed cycle gasoline turbine.
“The institution of a modular oil refinery in Guyana, developed with help from Indian firms, would serve to cut back Guyana’s reliance on imported petroleum merchandise whereas enhancing nationwide power independence,” in accordance with an April 2025 research by UPES, a Dehradun-based college and sponsored by the Excessive Fee of India in Guyana.
Queries emailed to the spokespersons of the ministry of exterior affairs and the Excessive Fee of the Cooperative Republic of Guyana in New Delhi remained unanswered.
Specialists mentioned Guyana is usually a key supply of oil and India can play a big position in its refining plans.
“If a rustic like India has a partnership with an energy-rich nation by way of exploration or refining, it all the time helps in provides of oil and merchandise from that energy-rich nation,” mentioned Kirit Parikh, former member (power) on the erstwhile Planning Fee. “In such a partnership it is vitally tough to cease provides. India has had such partnerships with a number of international locations, and this could herald good progress by way of assurance of provides.”
Prashant Vasisht, senior vice chairman and co-group head, company scores at ICRA Ltd, mentioned that though Guyana is way from India and logistics and freight prices could be increased, the nation has main reserves and has ramped up manufacturing considerably prior to now few years, which could be vital for India amid diversification of imports.
“Moreover, collaboration by way of refinery capability in Guyana would assist improve the relations and India can clearly present cost-effective companies each by way of consultancy and growth of the refinery, in comparison with different international expertise and consultancy suppliers,“ Vasisht added.
Focus of collaboration
The research by non-public college UPES (previously College of Petroleum and Power Research), famous that the power sector stays the cornerstone of Guyana’s growth agenda.
“Subsequently, the collaboration should concentrate on enhancing power safety, diversifying the power combine, and integrating renewable sources, whereas concurrently enhancing reliability and affordability,” in accordance with the research titled Alternatives for India-Guyana Cooperation in Power and Infrastructure Sector.
“India and Guyana ought to start by creating bilateral working teams to establish alternatives for joint funding in oil refining, oil storage and midstream logistics infrastructure. These efforts needs to be supported by feasibility research and market evaluation collectively undertaken by Indian public sector undertakings and Guyanese authorities businesses,” it mentioned.
In January, EIL signed a contract to broaden Africa’s largest oil refinery to develop one of many world’s largest hubs for nitrogenous fertilizers, comprising six ammonia-urea manufacturing trains. It can present PMC and engineering, procurement and development administration companies for the enlargement of the Dangote Fertilizer Complicated within the Lekki Free Commerce Zone in Nigeria.
“This Nigeria refinery that we’re constructing is part two of the primary one which we constructed. So, 650,000 barrels was the capability within the first part, and we at the moment are doubling it as much as 1.3 million barrels,” Shukla mentioned. “It can haven’t simply transportation fuels, it’ll even have a polypropylene plant. It’ll have a propane dehydrogenation facility as nicely, which is able to once more create extra propylene for extra polymer creation.”
EIL can be fertilizer tasks in the identical location, she mentioned.
On the enlargement of its international footprint, Shukla mentioned the corporate has an workplace within the UAE for its operations with Abu Dhabi Nationwide Oil Firm and now plans to arrange an workplace in Saudi Arabia to cater to Aramco, the biggest oil producer on this planet.
Aramco MoU
Final November, EIL signed a memorandum of understanding with Aramco Asia India Pvt Ltd to discover the industrial feasibility and enterprise potential of establishing a department workplace in Saudi Arabia.
India imports about 90% of its crude oil necessities, accounting for a few quarter of the nation’s import invoice. India sourced oil price $161 billion final fiscal.
India’s oil imports are more likely to proceed, given the rising consumption pattern. Petroleum product consumption is projected to achieve a report 252.9 million metric tonnes (MMT) in FY26, in accordance with the petroleum and pure gasoline ministry’s Petroleum Planning & Evaluation Cell. This marks a 4.65% improve from the 241.8 MMT in FY25.