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Register NowGuyana's President Irfaan Ali has said that he will formally call on the UN Security Council to impose sanctions on Venezuela for alleged violation of an International Court of Justice (ICJ) order that would see foreign companies barred from working on oil concessions in the disputed Essequibo region between the two nations.
"Guyana will tomorrow [Dec. 6] bring this matter to the United Nations Security Council for appropriate action to be taken by that body," Ali said late Dec. 5, adding that he has already spoken with UN Secretary General António Guterres and has had the promise of assistance from international allies including the US, UK and France.
Late Dec. 5, Venezuelan President Nicolas Maduro ordered state-owned companies PDVSA and Corporacion Venezolana de Guayana to grant licenses for the exploration and exploitation of oil, gas and mineral resources in the 160,000 square km disputed Essequibo territory, saying that foreign companies would have three months to withdraw from Guyana-awarded concessions in the offshore area.
"Venezuela does not recognize nor will it ever recognize the jurisdiction or competence of the International Court of Justice under any circumstances on the Esequiba Guyana," Maduro said, speaking at an event held at the auditorium of Fuerte Tiuna, a military institution, on Dec. 5.
He added that Venezuela's parliament would debate the potential creation of Guayana Esequiba as a new state in the country.
On Dec. 6, the Venezuelan Ministry of Foreign Affairs condemned Ali's statement and what it called Guyana's "reckless attitude", adding that this threatens "the peace zone that has been outlined in this region."
The ICJ, which is currently reviewing the territorial dispute between the two countries, on Dec. 1 ordered Venezuela not to make any border changes resulting from its consultative referendum on the matter Dec. 3.
The dispute between Venezuela and Guyana has intensified in recent years after several major oil discoveries were made in the offshore Stabroek block in the area. ExxonMobil, which owns a 45% working interest in the block, and its partners discovered more than 11 billion barrels of recoverable reserves in a series of discoveries, according to previous reports.
Other oil concessionaires in the territory include the Canadian joint venture CGX-Frontera, Spain's Repsol, UK-headquartered Eco Atlantic Oil and Gas, as well as France's TotalEnergies and companies from Malaysia and Saudi Arabia. A number of Canadian and US gold mining companies are also exploring in the region.
On Dec. 5, President Ali also sought to assure foreign investors that their operations in the disputed territory would remain safe.
"Your investment is in a safe, democratic stable country in which the rule of law prevails. You have nothing to worry about," he said. "By defying the court, Venezuela has rejected international law, the rule of law generally, fundamental justice and morality, and the preservation of international peace and security. They have literally declared themselves an outlaw nation. Nothing they do, however, will stop Guyana from proceeding with the case in the ICJ, or stop the ICJ from ultimately issuing its final Judgment on the merits of the case."
The escalation this week increases the risk that the US will reimpose sanctions on Venezuela, which were lifted on Oct. 18 on the condition that Venezuela show some progress on electoral reform.
Analysts at S&P Global Commodity Insights estimate that Venezuela could increase its production capacity by about 100,000 b/d with the lifting of sanctions.
Venezuelan crude oil production increased to 805,000 b/d in November, up 45,000 b/d from October, according to a production report from state-owned PDVSA consulted by S&P Global.