Will a 'Petroleum War' Break Out in South America? Venezuela Plans Exploration of Guyana Deposits

Guyana "Will Request Help from the UN"

Venezuela has pushed ahead with a referendum claiming sovereignty over its neighboring country Guyana's oil reserves and has decided to proceed with oil exploration. Guyana plans to seek assistance from the United Nations (UN).

According to foreign media including AFP on the 5th (local time), Venezuelan President Nicolas Maduro announced that oil exploration would be permitted in an area of 159,500 km² west of the Essequibo River.

This area is currently part of Guyana's territory and is reported to contain abundant mineral resources such as gold and diamonds. It accounts for more than two-thirds of Guyana's total land area (210,000 km²), which is roughly the size of the Korean Peninsula.

A panoramic view of Kaieteur Falls located in the 'Guayana Esequiba' region of Guyana.

Venezuela began asserting sovereignty over this area after offshore oil and natural gas were discovered. On the 3rd, it pushed ahead with a referendum, deciding with 95% support to annex the area as its own territory.

However, the international community does not recognize the results of Venezuela's referendum. On the 1st, the International Court of Justice (ICJ) ordered Venezuela to "refrain from any acts that threaten Guyana's sovereignty." In response, Venezuela rejected the ICJ's jurisdiction over the referendum case.

Meanwhile, President Maduro is continuing plans for oil exploration in Guyana's territory. He has established related departments within the state-owned oil and steel companies and stated that oil exploration licenses would be issued immediately.

Nicol?s Maduro, President of Venezuela, participated in a referendum on the incorporation of Guyana territory at a polling station set up in Caracas on the 3rd (local time). [Image source=Yonhap News]

He also notified private companies already operating in the area that they must leave within three months. Since 2019, a consortium of global oil giants including ExxonMobil has been producing oil off the coast of this area.

Meanwhile, Venezuela is keeping a distance from direct military action for territorial annexation. President Maduro said, "We will establish a military unit for the disputed area," but added, "the unit will be stationed in neighboring Venezuelan territory."

Guyana has stated that if Venezuela takes further actions to annex the territory, it will seek help from the UN. Anil Nandlall, Guyana's Minister of Legal Affairs, told AFP, "As the affected party, we will appeal to the United Nations Security Council (UNSC)," emphasizing, "The UNSC can authorize the use of force by member states to support enforcement of the ICJ's orders."