Engineers India Ltd Pursues Strategic Role in Guyana's First Oil Refinery Project
Engineers India Ltd (EIL), the state-run engineering consultancy firm, is currently engaged in advanced discussions with the government of Guyana to facilitate the development of the South American nation's inaugural oil refinery. This significant initiative represents a crucial step in deepening energy cooperation between India and Guyana, aligning with India's broader strategy to secure stable oil supplies amid growing domestic demand.
Project Details and Strategic Importance
According to Vartika Shukla, Chairman and Managing Director of EIL, the company plans to offer comprehensive project management and consultancy (PMC) services for the proposed refinery. While Guyana initially floated a tender for a 30,000 barrels per day facility, authorities later deemed this capacity economically unviable. Current considerations now focus on establishing a refinery with a capacity ranging between 1.5 million to 2 million tonnes per annum (mtpa).
An anonymous Indian government official revealed that constructing a 1.5 mtpa refinery would require an investment of approximately ₹7,000 crore, with PMC costs constituting about 2% of the total capital expenditure. This project holds immense strategic value for India, the world's third-largest oil importer, which began purchasing Guyanese oil during the current fiscal year, acquiring roughly 210,000 barrels per day in January alone.
EIL's Competitive Edge and Existing Presence
EIL possesses a distinct advantage in these negotiations due to its established footprint in Guyana. The company has previously provided consultancy services to Guyana Power and Gas Inc. for an integrated natural gas liquids plant and a 300MW combined cycle gas turbine project. Shukla emphasized EIL's commitment, stating, "We are in touch with the leadership in Guyana for favourably looking at us. We will make sure that we are there in their reckoning in a very serious manner."
The company's extensive global experience further strengthens its position. EIL has played pivotal roles in refinery development projects worldwide, including in Mongolia and Nigeria. Notably, it recently secured a contract to expand Africa's largest refinery—the Dangote refinery in Nigeria—demonstrating its technical prowess and execution capabilities.
Broader Implications for India-Guyana Relations
Guyana's substantial oil reserves, estimated at over 11 billion barrels of oil equivalent and considered the most significant global oil discovery of the past decade, make it an attractive partner for India. Through this refinery collaboration, India aims to secure long-term contracts for Guyana's oil share at preferential rates, thereby diversifying its import sources and enhancing energy security.
A 2025 study conducted by UPES (University of Petroleum and Energy Studies) in Dehradun, sponsored by the High Commission of India in Guyana, highlighted the mutual benefits. The study noted that a modular oil refinery developed with Indian support would reduce Guyana's dependence on imported petroleum products while boosting its energy independence.
Expert Perspectives on the Partnership
Energy experts underscore the strategic importance of this collaboration. Kirit Parikh, former member (energy) of the Planning Commission, remarked, "If a country like India has a partnership with an energy-rich nation in terms of exploration or refining, it always helps in supplies of oil and products. In such a partnership it is very difficult to stop supplies."
Prashant Vasisht, Senior Vice President at ICRA Ltd, acknowledged logistical challenges due to the distance between the two countries but emphasized Guyana's rapidly growing production capacity. He added, "Collaboration in terms of refinery capacity in Guyana would help enhance the relations and India can obviously provide cost-effective services both in terms of consultancy and development of the refinery."
Future Roadmap and EIL's Global Expansion
The UPES study recommended establishing bilateral working groups to identify joint investment opportunities in oil refining, storage, and midstream logistics infrastructure, supported by feasibility studies conducted collaboratively. This approach would formalize the energy partnership between the two nations.
Concurrently, EIL continues to expand its global footprint. Beyond the Guyana initiative, the company recently signed a contract to double the capacity of the Dangote refinery in Nigeria to 1.3 million barrels and is exploring fertilizer projects at the same site. Furthermore, EIL plans to establish an office in Saudi Arabia to cater to Aramco, following a memorandum of understanding signed last November to explore business potential in the region.
This strategic move into Guyana's refining sector occurs against the backdrop of India's escalating oil consumption. Petroleum product consumption is projected to reach a record 252.9 million metric tonnes in FY26, marking a 4.65% increase from the previous year. With India importing approximately 90% of its crude oil requirements, partnerships like the one with Guyana are becoming increasingly vital for ensuring long-term energy security and stabilizing import costs.
