Explained: What is the border dispute between Venezuela and Guyana?

explained
Explained: What Is The Border Dispute Between Venezuela And Guyana?
An aerial view of the Essequibo region, which is at the centre of the dispute between Guyana and Venezuela. Photo: Getty Images
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Tensions between neighbours Venezuela and Guyana have ratcheted up in recent weeks over a long-running territorial dispute.

At issue is a 160,000-square-km border territory around the Esequibo river, which is mostly jungle, and an offshore area where massive discoveries of oil and gas have been made.

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Both countries claim ownership of the territory, which is sparsely populated and whose much-disputed border was agreed under an 1899 decision when Guyana was still part of the Commonwealth.

What has sparked the tensions?

Venezuela reactivated its claim to the territory in recent years after the finding of some 11 billion barrels of recoverable oil and gas off Guyana's coast.

Venezuela won backing in a referendum in early December to create a new state and Venezuelan president Nicolás Maduro has pledged oil and mining exploration in the claimed area.

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Analysts and sources in the Venezuelan capital, Caracas have said the referendum, in which voters also rejected the International Court of Justice's (ICJ) jurisdiction over the case, will not translate to an actual invasion.

It is, they say, an attempt by Maduro to show strength and gauge support for his government ahead of 2024 presidential elections.

Why is the territory important?

Though the onshore area of the Esequibo is largely undeveloped jungle, there have been major offshore discoveries of crude and gas nearby in recent years, putting Guyana on the world map of oil producers.

A consortium by Exxon Mobil, China's CNOOC and US Hess began oil production in Guyana in 2019.

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Oil production is currently at some 400,000 barrels-per-day (bpd) of oil and gas and is expected to rise to more than 1 million bpd by 2027.

It has sharply boosted Guyana's economy and promises huge income for the country over the coming years.

Though Venezuela sits on the world's largest crude reserves and also has massive deposits of natural gas, its production has fallen significantly in recent years on US sanctions, alleged corruption and deteriorated infrastructure.

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Photo: Graphic News

Earlier this month, Maduro said he would authorise oil exploration in the Esequibo, with state oil company PDVSA and state iron-and-steel maker CVG creating divisions for the disputed region.

His office has said Guyana should not be allowed to grant concessions in "to-be demarcated" ocean areas.

It is not entirely clear which offshore areas Maduro is claiming for Venezuela, but he has said all companies already operating offshore Guyana have three months to leave. Exxon has said border disputes are for countries and relevant international bodies to solve.

What has the International Court of Justice said?

Guyana had asked the ICJ to bar the referendum.

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The court did not go that far in a ruling last week, but it prohibited Venezuela from taking any action that would change the status quo.

Maduro has repeatedly said the referendum is binding, though the vote was previously referred to by his government as "consultative."

What has been Guyana's response?

Guyana reported Maduro's comments about proposed oil development to the United Nations and the ICJ and Guyanian president Irfaan Ali has spoken with UN Secretary General Antonio Guterres.

His country's armed forces are on high alert, Ali added, saying Venezuela had declared itself an "outlaw nation" and blatantly disregard ICJ orders.

Ali also sought to calm potential investors, saying Guyana has been assured of support by partners and the international community.

Venezuela's foreign minister said on social media on Wednesday he spoke to his Guyanese counterpart about what he called Venezuela's "unappealable mandate".

Guyana's government has questioned turn-out figures given by Maduro's government for the referendum.

Electoral authorities spoke about 10.5 million votes on the five referendum questions, but later said that figure referred to total voters. Reuters witnesses saw several poorly-attended polling places during the vote.

What's the latest update?

On Sunday, the UK confirmed it will send a British navy warship to the region in a show of support towards Guyana.

HMS Trent will take part in joint exercises with Guyana after Christmas.

A UK Ministry of Defence spokesperson said: “HMS Trent will visit regional ally and Commonwealth partner Guyana later this month as part of a series of engagements in the region during her Atlantic patrol task deployment.”

-Reuters

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