From Schomburgk Street to 'black gold'

The dispute over the oil-rich Essequibo territory between Venezuela and Guyana is not only rooted in historical conflict, but also involves energy interests.

Venezuelans take to the streets to protest over the sovereignty of the oil-rich Essequibo region. (Source: Venezuelanalysis)

On December 3, Caracas held a nationwide referendum on Venezuela's sovereignty over the Essequibo region - about 160,000 square kilometers, located west of the Essequibo River, with most of the area covered by dense forests and near the sea - where large oil and gas reserves have been discovered.

The 95% yes vote was the final result of the referendum, creating the basis for the government of Venezuelan President Nicolas Maduro to move towards gaining control of Essequibo, despite fierce reactions from neighboring countries and concerns from the international community.

However, the Venezuela-Guyana territorial conflict is not simply a struggle for resources but also stems from historical contradictions.

Schomburgk Street

In 1814, the United Kingdom acquired Guyana under a bilateral treaty with the Netherlands. Since the agreement did not specify a western boundary, the British commissioned geographer Robert Schomburgk to demarcate it. After a period of research, the Schomburgk Line was drawn in 1835, allowing the British to extend Guyana's territory to the mouth of the Orinoco River - deep into present-day Venezuela.

In 1841, Caracas protested against Britain's unilateral demarcation of the Schomburgk Line, and asserted that its borders extended eastward to the Essequibo River - a claim to two-thirds of Guyana's territory.

In order to avoid escalating the conflict, Britain agreed to negotiate, offering to cede to Venezuela the entire mouth of the Orinoco River and surrounding areas, while maintaining its rights to the territory of Guyana extending across the Essequibo River.

However, Caracas was not satisfied with the above arrangement, so it decided to cut off diplomatic relations with Britain in 1876 and called on the US to join the war on the basis of the Monroe Doctrine - Washington's foreign policy in the 19th century to oppose European intervention in Latin America.

In 1895, US Secretary of State Richard Olney sent a note of protest and asked Britain to refer the Essequibo dispute to arbitration. At the same time, Washington asked Congress to authorize the establishment of a boundary commission to resolve disagreements and ensure security in the “backyard” area.

Under such pressure, Britain accepted to resolve the dispute through a US-coordinated commission, while, because Venezuela was the one who actively invited the US to intervene, it believed that the commission would make a decision in its favor.

But contrary to Caracas' expectations, on October 3, 1899, the commission ruled to maintain the status quo, Britain ceded the mouth of the Orinoco River and neighboring lands to Venezuela, while still being allowed to maintain control of Guyana and the Essequibo region.

In a speech on Venezuela's position on the territorial dispute with Guyana on December 8, 2023, President Nicolas Maduro presented a new map, with a territorial adjustment that includes the Essequibo region. (Source: Getty Images)

'Black gold' dispute

The conflict has been heating up since 2015, when the US corporation Exxon Mobil discovered oil reserves off the coast of Essequibo and since 2019, this enterprise has entered into a joint venture with China National Offshore Oil Corporation (CNOOC) and Hess Group to start exploitation.

Oil and gas production currently stands at around 400,000 barrels per day, expected to increase to over 1 million barrels per day by 2027. According to the latest report, Guyana's current accumulated oil reserves could be as high as 11 billion barrels, meaning the country is among the 20 countries with the largest oil reserves in the world.

In September 2023, Guyana opened bidding for 14 more offshore oil blocks for exploration and development, with six companies and corporations submitting bids, including ExxonMobil of the United States, China National Offshore Oil Corp of China and Total Energies of France. These activities promise to create a strong breakthrough for the Guyana economy with huge revenues from energy trade in the coming time.

Although Venezuela has the world’s largest crude oil reserves and vast natural gas reserves, its production has declined significantly in recent years due to US sanctions and deteriorating infrastructure. On December 5, President Maduro affirmed that he would allow oil and gas exploration in Essequibo, allowing state-owned oil company PDVSA and steelmaker CVG to divide up the disputed area.

Furthermore, Mr. Maduro announced that all companies operating off the coast of Guyana have three months to leave, announced the creation of a new Comprehensive Defense Operations Zone in the Essequibo region, and asked the country's National Assembly to pass a bill creating the “Guayana Esequiba State.”

The above developments forced the Guyana government to react immediately, condemning Venezuela's move as a violation of international law, and warning that any country that openly challenges international organizations is a threat to the world.

Guyana President Irfaan Ali said Venezuela disregarded the ruling of the United Nations International Court of Justice (ICJ), which called on Caracas to exercise restraint and not change the status quo of the disputed territory with Georgetown until the court issues a final ruling.

Guyana President Irfaan Ali wears a map of the Essequibo region on his wrist, to show his determination to protect the country's sovereignty. (Source: PBS)

International reaction

Prior to Venezuela's referendum, the ICJ had asked Venezuela to exercise restraint and avoid unilateral changes to the status quo, and precisely defined the current status quo as “Guyana exercises effective administration and control over this area (Essequibo)”.

The Commonwealth, the Caribbean Community, the Organization of American States and other international organisations have issued statements condemning the “illegitimacy” of the Venezuelan referendum and expressing solidarity with Guyana. The two major American countries, the United States and Brazil, have expressed their support and are closely monitoring the situation with Guyana.

In addition, on December 24, 2023, the British Ministry of Defense announced that the country will deploy a naval ship off the coast of Guyana in the context of Georgetown's border dispute with Venezuela. The statement stated that the HMS Trent will visit regional ally and Commonwealth partner Guyana to demonstrate its commitment to the Atlantic Patrol Mission.

Responding to the move, on December 26, Venezuelan Defense Minister Vladimir Padrino López affirmed that the country's military is always on alert to protect the Essequibo territory. On the same day, President of the Latin American Parliament of Venezuela Ángel Rodríguez condemned the UK's decision, saying it was a provocative act that threatened regional peace.

Thus, the Essequibo dispute stems from two main causes: the demarcation of the Schomburgk border in the 19th century and the abundant oil resources in the area.

The oil issue has been the main factor leading to tensions between the two countries in recent years, causing Venezuela to step up its assertion of sovereignty and face fierce opposition from Guyana. Not only that, international organizations, along with major countries in the Americas and Europe, have expressed their support for Georgetown and called on Caracas to avoid escalating the conflict and not change the status quo of the disputed territory.

Source: https://baoquocte.vn/tranh-chap-lanh-tho-essequibo-tu-duong-schomburgk-den-vang-den-256492.html