Guyana-Venezuela Tensions: Oil and Territorial Issues

The territorial dispute between Guyana and Venezuela is intensifying following President Maduro's recent statements on the Essequibo, exacerbating the oil stakes in the region.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

The geopolitical dynamic between Guyana and Venezuela has recently taken an alarming turn. Guyana’s President Irfaan Ali has expressed serious concern at statements made by Venezuelan President Nicolas Maduro, calling them a “direct threat” to Guyana’s territorial integrity and sovereignty. This tension is exacerbated by Maduro’s unilateral actions in ordering the granting of oil licenses in Essequibo, an oil-rich region currently under Guyanese administration. This decision comes in the wake of a referendum in Venezuela, where an overwhelming majority of participants expressed their support for the annexation of Essequibo.
This complex situation has its roots in a long history of territorial claims. Venezuela has argued for decades that the Essequibo, a 160,000 km² territory representing more than two-thirds of Guyana, should form part of its borders, a claim based on historical delimitations from the time of the Spanish Empire. Guyana, on the other hand, maintains that the border was clearly defined during British colonial times, and was officially recognized in 1899.

International reactions and the Guyanese position

President Ali reacted swiftly to these events, warning of the potential consequences for international peace and security. He contacted the Secretary General of the United Nations and other world leaders to inform them of these worrying developments. Guyana, affirming its position, considers Venezuela’s actions to be a flagrant violation of international law and an imminent threat to its national sovereignty.
In a climate of growing tension, Guyana has stepped up its security measures, placing its forces on full alert. President Ali’s determination to protect his country’s territorial integrity is clear, underlining the seriousness with which Guyana views the current situation.

Oil and legal implications

ExxonMobil’s discovery of substantial oil reserves in the Essequibo in 2015 added a further layer of complexity to the dispute. Guyana, already endowed with vast oil reserves, now faces a neighbor with the largest proven oil reserves on the planet. This geopolitical reality underlines the strategic importance of the region and the significant economic stakes for both nations.
Maduro, in ordering PDVSA to exploit the Essequibo’s oil and gas resources, also proposed legislation to prohibit contracts with companies operating under concessions granted by Guyana. This bold move reflects an aggressive strategy by Caracas to assert its territorial and resource claims.

The International Court of Justice, while not recognizing Venezuela in this case, has ordered Caracas to refrain from any action that would alter the situation in Essequibo. Despite this, Maduro seems determined to press ahead with his plans, causing further uncertainty in the region.

A Conflict with Profound Implications

The Essequibo crisis raises critical questions about international law, territorial sovereignty and the exploitation of natural resources. It highlights the complexity of territorial conflicts exacerbated by the presence of precious natural resources and regional power dynamics. While Guyana looks to the international community for support, Venezuela seeks to assert its presence in a region it considers historically its own. This situation continues to be a significant test for international diplomacy and the peaceful resolution of territorial disputes.

The Essequibo conflict is more than just a territorial dispute; it represents a complex mix of historical claims, economic issues and principles of international law. As tensions mount, the implications of this conflict extend far beyond the borders of Guyana and Venezuela, touching on fundamental issues of sovereignty, regional security and natural resource management.

 

Al-Harfi and SCLCO signed agreements with Syrian authorities to develop solar and wind capacity, amid an ongoing energy rapprochement between Riyadh and Damascus.
Faced with risks to Middle Eastern supply chains, Thai and Japanese refiners are turning to US crude, backed by tariff incentives and strategies aligned with ongoing bilateral trade discussions.
France intercepted a tanker linked to Russian exports, prompting Emmanuel Macron to call for a coordinated European response to hinder vessels bypassing oil sanctions.
The activation of the snapback mechanism reinstates all UN sanctions on Iran, directly affecting the defence, financial and maritime trade sectors.
Commissioner Dan Jørgensen visits Greenland to expand energy ties with the European Union, amid plans to double EU funding for the 2028–2034 period.
European and Iranian foreign ministers meet in New York to try to prevent the reinstatement of UN sanctions linked to Tehran’s nuclear programme.
Canadian Prime Minister Mark Carney announces a bilateral agreement with Mexico including targeted investments in energy corridors, logistics infrastructure and cross-border security.
The US president has called for an immediate end to Russian oil imports by NATO countries, denouncing a strategic contradiction as sanctions against Moscow are being considered.
Tehran withdrew a resolution denouncing attacks on its nuclear facilities, citing US pressure on IAEA members who feared suspension of Washington’s voluntary contributions.
Poland’s energy minister calls on European Union member states to collectively commit to halting Russian oil purchases within two years, citing increasing geopolitical risks.
Athens and Tripoli engage in a negotiation process to define their exclusive economic zones in the Mediterranean, amid geopolitical tensions and underwater energy stakes.
European powers demand concrete steps from Tehran on nuclear issue or United Nations sanctions will be reinstated, as IAEA inspections remain blocked and tensions with Washington persist.
Brussels confirms its target to end all Russian energy imports by 2028, despite growing diplomatic pressure from Washington amid the ongoing conflict in Ukraine.
Donald Trump threatens to escalate US sanctions against Russia, but only if NATO member states stop all Russian oil imports, which remain active via certain pipelines.
The two countries agreed to develop infrastructure dedicated to liquefied natural gas to strengthen Europe's energy security and boost transatlantic trade.
Ayatollah Ali Khamenei calls for modernising the oil industry and expanding export markets as Tehran faces the possible reactivation of 2015 nuclear deal sanctions.
The Ukrainian president demanded that Slovakia end its imports of Russian crude, offering an alternative supply solution amid ongoing war and growing diplomatic tensions over the Druzhba pipeline.
The United States cuts tariffs on Japanese imports to 15%, while Tokyo launches a massive investment plan targeting American energy, industry, and agriculture.
Brazil’s Cop 30 presidency aims to leverage the Dubai commitments to mobilise public and private actors despite ongoing deadlock in international negotiations.
Brasília has officially begun the process of joining the International Energy Agency, strengthening its strategic position on the global energy stage after years of close cooperation with the Paris-based organisation.