Venezuelan President Nicolás Maduro has recently made a significant directive that could have far-reaching consequences. On Tuesday, he instructed the country’s state-owned companies to “immediately” start exploring and exploiting the vast oil, gas, and mineral resources in Guyana’s Essequibo region. This region, larger than Greece, is not only rich in resources but is also a territory that Venezuela claims as its own.
Maduro’s directive came on the heels of a victory in a weekend referendum, where the people voted on whether to claim sovereignty over the disputed Essequibo region. With a successful outcome, Maduro swiftly declared his intent to proceed with granting operating licenses for the exploration and exploitation of oil, gas, and minerals in the entire Essequibo area. To facilitate this, he ordered the creation of local subsidiaries for Venezuelan public companies, including the renowned oil giant PDVSA and the mining conglomerate Corporación Venezolana de Guayana.
However, the implementation of this idea raises several questions. The Maduro administration has not provided clear details on how it plans to exert jurisdiction over the territory once it is officially declared part of Venezuela through a law that is set to be discussed by the National Assembly, a body currently under the control of the ruling party.
In addition to the announcement regarding the exploitation of resources in Essequibo, Maduro unveiled the creation of a new Comprehensive Defense Operational Zone (Zodi in Spanish) for the disputed strip. This move resembles special military commands operating in different regions of the country and indicates a heightened focus on defense in the contested territory.
Essequibo, comprising two-thirds of Guyana, has been a historical point of contention. Venezuela’s claim is rooted in historical boundaries dating back to the Spanish colonial period, challenging the 1899 border decision by international arbitrators when Guyana was still a British colony.
The commitment of Venezuela to pursue this territorial claim has fluctuated over the years but gained renewed interest in 2015 when ExxonMobil discovered commercial quantities of oil off the Essequibo coast.
In response, Guyana denounced Venezuela’s actions and the recent referendum as a pretext to annex the land. Seeking intervention, Guyana appealed to the International Court of Justice, the United Nations’ top court, which on Friday ordered Venezuela not to take any action to change the status quo until the panel can rule on the competing claims.
Despite international concerns and legal proceedings, the Maduro administration is moving forward with its plans. Maduro has taken to social media X (formerly Twitter) to announce the establishment of the Comprehensive Defense Zone and emphasize the importance of adhering to international law, particularly concerning the de facto “control and administration” of the territory.
The US Interest in the Region
Reports from the public domain reveal insights from US SOUTHCOM General Laura Richardson, highlighting the abundant resources in the Latin American region. She underscores the significance of the Western Hemisphere, pointing out discoveries of Light Sweet Crude over Guyana and substantial resources like oil, copper, gold, and heavy crude oil in Venezuela. Richardson also notes the global importance of the region, with 60 percent of the world’s lithium located in the Lithium Triangle (Argentina, Chile, and Bolivia) and 31 percent of the world’s fresh water in the Amazon basin.
Finally, the geopolitical implications of the dispute, coupled with the rich resources at stake, underscore the broader significance of this territorial struggle in the Latin American context. As the world watches these developments unfold, the future of the Essequibo region remains uncertain, with diplomatic and legal challenges likely to shape the outcome.