Venezuela votes to claim Guyana-controlled oil region

Venezuela to vote on claiming Guyana-controlled oil region

GEORGETOWN, December 5, 2023 – The Venezuelan government has launched a referendum asking its citizens to vote on the nation’s claim to the oil-rich Essequibo region that is now controlled by Guyana, Upstream Online reported on Monday.

The 160,000-square-kilometre Essequibo region makes up two thirds of Guyana’s landmass and is home to 125,000 of the nation’s 800,000 citizens.

According to Elvis Amoroso, head of Venezuela’s National Electoral Council, preliminary results of the vote on Sunday show “overwhelming” support for the claim.

In 2015, ExxonMobil first discovered oil in the prolific 26,000-square-kilometre Stabroek block that borders the disputed region.

Since its first discovery the American energy giant has discovered 11 boe of recoverable oil and gas reserves through 46 discoveries, including the most recent in October 2023.

ExxonMobil and its partners began production in 2019 at the Stabroek block.

The consortium plans to produce up to 1.2 million boe from the block by 2027.

ExxonMobil operates the Stabroek block with a 45% stake, while partners Hess Corporation holds a 30% stake and China National Offshore Oil Corporation holds the remaining 25% stake.

The dispute between Venezuela and Guyana over the region began in the late 1800s when an international tribunal awarded Britain control over the region. In 1962, Venezuela contested the ruling.

Guyana achieved independence from Britain in 1966.

“I’m not sure the press has captured the true intensity of the situation there, but we’re keeping an eye on it,” said Darren Woods, CEO of ExxonMobil, at the sidelines of the COP28 conference in Dubai, UAE.

“We can do what we can do, which is making sure that we’re helping the government of Guyana by producing the resources efficiently.”

Recently the USA significantly rolled back sanctions imposed on Venezuela’s oil and gas industry due to guarantees agreed by the local government for an election in the South American country in 2024.

The USA imposed sanctions on Venezuela following President Nicolás Maduro’s election in 2018.

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