The Union Cabinet has approved the signing of a Memorandum of Understanding (MoU) between India and Guyana.The MoU, set to bolster cooperation in the hydrocarbon sector, reflects a renewed commitment to sustainable energy practices and strategic global partnerships.

The proposed MoU encompasses a comprehensive range of collaboration across the hydrocarbon value chain, underscoring the depth of engagement between the two nations. Key components of the agreement include:

1. Crude Oil Sourcing from Guyana 

2. Participation in Exploration and Production (E&P) Sector

3. Capacity Building and Bilateral Trade Strengthening

4. Collaboration in Natural Gas Sector

5. Regulatory Policy Framework Development

6. Clean Energy Initiatives

Guyana has recently emerged as a noteworthy player in the global oil and gas sector, becoming the world's newest oil producer. India, on the other hand, stands as the world's third-largest energy consumer and is focusing on diversifying crude oil sources and acquiring quality overseas assets to enhance strategic maneuverability.