Venezuela-Guyana Border Dispute Sparks Concern Across the Globe
Chairman of the Special Commission for Defense of Guyana Essequibo, Hermann Escarra, standing next to the new Venezuelan Map that includes the Essequibo territory. Source: AP Photos/ Matias Delacroix
The longstanding territorial dispute between Venezuela and Guyana has escalated in recent weeks, drawing international attention and raising concerns over the potential for a broader conflict. At the heart of the matter is the oil-rich Esequibo region, spanning over 160,000 square kilometers, where significant oil and gas reserves have been discovered. Venezuela asserts that Americans and Europeans colluded to deprive them of the land, contending that a 1966 agreement involving Venezuela, Britain, and the colony of British Guiana effectively annulled the original arbitration. In contrast, Guyana maintains that the initial accord is both legal and binding. The United Nations’ top court has yet to rule on the issue, and a decision is expected to take years.
As the two nations vie for control, the situation has taken a more contentious turn after Venezuela's President Nicolás Maduro unveiled a new map that includes the disputed territory. In response, Guyana's President Irfaan Ali acted with urgency, employing diplomatic appeals. This escalation follows a controversial referendum where over 95% of voters supported the Venezuelan government's claim to the disputed territory. Maduro's announcement of plans to establish a new state called "Guayana Esequiba" and his directive for oil companies operating in the region to leave within three months have further heightened tensions.
President Irfaan Ali declared the situation an "existential threat" to Guyana's territorial integrity, sovereignty, and political independence in a national address. He is actively seeking international support, reaching out to global leaders such as the United States, India, and Cuba. Emphasizing diplomacy as the primary defense, Ali expresses hope for a peaceful resolution to the conflict. His diplomatic efforts involve reporting Maduro's actions to the United Nations and the International Court of Justice (ICJ). Ali aims to assure investors that Guyana remains a stable and secure destination for business despite the escalating tensions. Furthermore, Guyana's armed forces are on high alert, and the nation has implemented precautionary measures to safeguard its borders.
A demonstrator holds a sign of the Venezuelan map with the Essequibo territory included in Caracas, Venezuela. Source: AP Photos/ Matias Delacroix
The United States has unequivocally expressed support for Guyana, employing various strategies to reinforce its commitment. In a significant development, the United States has announced plans to conduct military flights in Guyana, collaborating with the Guyana Defence Force. The U.S. Southern Command emphasized that the flight operations are part of a routine engagement to strengthen the security partnership between the two nations. Diplomatically, U.S. Secretary of State Antony Blinken engaged in direct communication with Guyana's President Irfaan Ali, delivering a clear reaffirmation of unwavering support for Guyana's sovereignty. The move signals Washington's commitment to supporting Guyana's sovereignty and addressing the potential threat posed by Venezuela's actions.
The international community, including Britain and Brazil, has expressed concern over Venezuela's recent actions, describing them as unjustified and urging a halt to such activities. Brazil's President Luiz Inácio Lula da Silva has voiced growing concern and proposed engaging in multilateral dialogues to seek a peaceful resolution. This situation has prompted Brazil to increase its state of vigilance and intelligence gathering near the Guyana-Venezuela border.
The discovery of major oil deposits off Esequibo's shore in 2015 by an ExxonMobil-led consortium heightened Venezuela's interest in the territorial claim. The consortium initiated oil production in December 2019, transforming Guyana into the world’s fourth-largest offshore oil producer and significantly boosting its economy. Guyana's crude exports, destined for countries like the Netherlands and Panama, are expected to increase further in the coming years. In contrast, Venezuela, despite having the world’s largest proven crude reserves, has witnessed a sharp decline in its oil industry due to years of mismanagement and economic sanctions imposed on the state-owned oil company following President Nicolás Maduro’s re-election in 2018.
The United States is actively engaging with representatives from the government of Venezuelan President Nicolas Maduro as the Biden administration considers reinstating energy sanctions on the country. In October, the United States demonstrated a willingness to participate in diplomatic efforts to address the political and humanitarian crisis in Venezuela. Humanitarian concerns, arising from the dire economic situation, food shortages, and healthcare challenges in Venezuela, prompted a reassessment of sanctions. The United States agreed to ease sanctions on Venezuela's oil sector in response to a deal reached between the government and opposition parties for the 2024 election. State Department official Brian A. Nichols underscored the ongoing discussions with Maduro's representatives and consultations with the democratic opposition, aiming to create conditions for a more democratic, prosperous, and secure Venezuela.
According to the terms of the recent negotiations, Maduro's regime must lift public office bans on opposition candidates and the release of political prisoners and wrongfully detained Americans in order to avoid the reversal of October's sanctions relaxations. While the Maduro administration has permitted opposition figures to present their cases before the country's top tribunal, the United States stresses the need for broader democratic reforms. The loosening of sanctions has formalized oil trade, benefiting consumers. However, the recent escalation holds the potential to jeopardize agreements between Venezuela and the United States. Indirectly, the latter has supported Guyana's economic interests by assuring major investors like Exxon of regional stability and vital economic activities, such as oil exploration. This approach aligns with what the United States calls its commitment to fostering democratic conditions in Venezuela, while simultaneously safeguarding regional economic interests.