Essequibo Referendum: Venezuela Orders Granting of Oil Licenses in Guyana Region

Three days after a referendum on the integration of Essequibo, territory of Guyana, into Venezuela, tension rose between the leaders of the two countries on Tuesday, December 5

Essequibo Referendum: Venezuela Orders Granting of Oil Licenses in Guyana Region

Three days after a referendum on the integration of Essequibo, territory of Guyana, into Venezuela, tension rose between the leaders of the two countries on Tuesday, December 5. Venezuelan President Nicolas Maduro has ordered the granting of oil licenses in the Essequibo, statements that constitute “a direct threat” according to his Guyanese counterpart, Irfaan Ali.

On Sunday, Venezuela held a referendum on Essequibo. According to official figures – contested by many observers – some 10.4 million Venezuelan voters took part and 95% said they were in favor of the zone’s integration into their country. Riding on this “victory”, Mr. Maduro on Tuesday ordered the public oil group PDVSA to grant oil and gas exploitation licenses in the Essequibo region.

He also proposed that the country adopt a special law prohibiting the signing of contracts with companies working in the sector under concessions granted by Guyana. Mr. Maduro spoke of a three-month deadline given to these companies to withdraw from the zone “to be demarcated,” while saying he was “open to discussion.”

“Venezuela declared itself an outlaw nation”

He also asked to ensure that a law is promulgated to create the province of Guayana Esequiba, that a census be conducted there and that identity cards be issued to the inhabitants. The Venezuelan president nevertheless called for “a fair diplomatic agreement, satisfactory for the parties and friendly” while affirming that his country would “recover” the Essequibo, where vast deposits of crude oil were discovered in 2015.

The Guyanese president did not wait long to react, delivering an exceptional address to the nation late Tuesday evening. “This is a direct threat to the territorial integrity, sovereignty and political independence of Guyana. (…) Guyana views this as an imminent threat,” he said. “I spoke this evening to the United Nations Secretary-General and several leaders to alert them to this dangerous development and the desperate actions of President Maduro that jeopardize international law and pose a significant risk to international peace and security ", he added.

“We urge President Maduro to reverse his mistakes and act and behave in accordance with international law,” he said, adding that Guyanese forces were on “full alert”. “Venezuela has rejected international law, the rule of law, justice (…) as well as the preservation of international peace and security, and has literally declared itself an outlaw nation,” he said. insisted.

Largest oil reserves per capita

Caracas has for decades claimed Essequibo (sometimes called Guayana Esequiba), a territory of 160,000 km2 representing more than two-thirds of Guyana and where 125,000 people live, or a fifth of its population. Venezuela maintains that the Essequibo River should be the natural border, as in 1777, during the time of the Spanish Empire. Guyana, for its part, believes that the border dates from the English colonial era and was ratified in 1899.

The International Court of Justice (ICJ), the highest judicial body of the United Nations (UN), whose jurisdiction Venezuela does not recognize in this case, ordered the Venezuelan government on Friday to “refrain from any action likely to change the situation” in Essequibo and for both parties to “refrain from any action likely to aggravate or extend the dispute.”

Venezuela's claim has become even hotter since the discovery of oil in the Essequibo by ExxonMobil in 2015. A new and significant discovery of black gold was made last month in the region, adding to Guyana's reserves by at least ten billion barrels, more than those of Kuwait, and Guyana has the largest oil reserves per capita in the world. Venezuela, for its part, has the largest proven reserves on the planet.