Venezuela’s recent increased aggression in seeking to annex the Essequibo region has come at a time when Guyana is experiencing immense success in its offshore oil and gas industry. The moves by President Nicolas Maduro to occupy Guyana’s Exclusive Economic Zone (EEZ) can only be seen as an attempt to reap the benefits of the work put in to explore and develop the basin, while simultaneously attracting investor interest in the area.

The border dispute between British Guiana and Venezuela was legally settled on October 3, 1899, via the Arbitral Award in which both countries participated and were equally represented. About 67 years later in 1966, the year Guyana gained its independence, Venezuela defied this award and illegally occupied Ankoko Island located in the Cuyuni River.

Since 2013 when Venezuela’s Navy seized an oil exploration vessel offshore Guyana and the Venezuelan government sought to stymie offshore development, there has been no annexation attempts by the Spanish-speaking neighbour. That is until ExxonMobil discovered commercial oil offshore Guyana in 2015. So, for more than a century following the Arbitral Award, there were no attempts by Venezuela to occupy Guyana nor to obtain its lucrative offshore resource.

Maduro’s aggression seems to have intensified with the newfound wealth in Guyana’s waters and the fact that his country is experiencing an economic crisis. Since 2015, there have been more than 30 discoveries offshore Guyana, amounting to some 11 billion barrels of oil equivalent resources.

ExxonMobil and its co-venturers have since invested a whopping US $19.4 billion to develop Liza 1, Liza 2, and Payara where three FPSOs are operating, producing close to 500,000 barrels of oil per day. Guyana’s resources have allowed it to become one of the fastest-growing economies in the world. The International Monetary Fund’s latest report projects Guyana’s economy to grow by 38 percent at the end of 2023, after expanding by 62.3 percent in 2022 representing the highest real Gross Domestic Product in the world for that year. Investors from across the world have since been flocking to Guyana, investing large sums to capitalise on the opportunities available.

While major companies are looking to invest in Guyana, Venezuela is seeking to cause panic. Guyana is currently seeking the assistance of international partners and the International Court of Justice to have the controversy being stirred up by Venezuela, settled through peaceful means.

President of Guyana, Dr. Mohamed Irfaan Ali in a recent address to the nation, said to investors, “Our message is very clear, your investment is in a safe, democratic country in which the rule of law prevails. Our international partners and the international community are ready to support us, they have assured us of our support and all we want is for these missteps to be corrected by President Maduro.”

President Ali’s comments follow the Venezuelan President’s statement on December 5 which included a directive to Venezuela’s state-owned companies to immediately explore and exploit the oil, gas and mines in Guyana’s Essequibo region. Maduro’s utterances stemmed from a referendum that was held on December 3 to infringe on Guyana’s territorial integrity.

President Ali also noted that he has spoken to the UN Secretary General and several leaders, alerting them to these “dangerous developments and the desperate actions of President Maduro that fly in the face of international law and constitute a grave threat to international peace and security.” The matter was also taken to the UN Security Council for appropriate action to be taken by that body.

Guyanese, foreign investors, neighbours and the world at large are paying keen attention to every action of Venezuela. They can be assured, as the government has stated, that every effort is being made to ensure that Guyana’s sovereignty is respected, and that the country remains a stable investment destination.