Venezuelan military intimidates US oil assets in Guyana

If there were any doubts about whether Venezuela is bluffing or cavalier about its decades-old claim to a large swath of Guyana’s landmass and related waters, doubts should now fade following Saturday’s appearance of a Venezuelan gunboat in the midst of commercial offshore oilfields licensed by Guyana.

Guyanese awoke to news at the weekend that a military vessel had sailed right into the middle of oilfields in the prolific Stabroek Block with its crew using open radio communication to tell the flotilla of rigs, storage and production vessels (FPSOs) that they were operating illegally and in waters owned by Venezuela.

Guyanese government officials like Foreign Secretary Robert Persaud were quick to point out that the area where nearly all of the daily oil production occurs is far removed from the western Essequibo Region and maritime area that Venezuela has for decades claimed as its own. Activities from three oilfields in the block, producing around 650,000 barrels of oil daily, are on the southeastern border with Suriname, hundreds of miles away from the Essequibo and far removed from the area that its South American neighbor claims. Still the vessel made an appearance, using radio communication to question crews about the legality of their presence in the area.

Apparently spooked by the brazenness of the incident, Guyanese authorities moved to quickly alert the international community, aware that its military with less than 10,000 men and women would be no match for its neighbor if armed conflict breaks out. The Irfaan Ali administration also counted on the fact that oil production and field development are being done by an international consortium led by American supermajor ExxonMobil, Hess Corp also of the US and CNOOC of China so Washington should have an interest as Guyana oil is important to the international community.

Within hours of the international appeal from Guyana, the US government through its Bureau of Western Hemisphere Affairs at the State Department asked Venezuela to back off and be responsible as there could be consequences if there is a repeat.

“Venezuelan navy vessels threatening ExxonMobil’s FPSO unit is unacceptable and a clear violation of Guyana’s maritime territory,” the US government said in a statement. Further provocation will result in consequences for the Maduro regime,”it warned through its Bureau of Western Hemisphere Affairs. In addition to production from the three fields currently, five more are in the pipeline for development that could take production in less than five years to beyond 1.5 million barrels daily.

Other statements of condemnation came from the 15-nation Caribbean Community, The Commonwealth, the Organization of American States (OAS) and a plethora of organizations and countries which rushed to condemn Venezuela with most suggesting that it is acting illegally.

Clearly tired of periodic incursions and threats to investors by Venezuela, Guyana in 2018 took the case to The World Court in The Netherlands for a once and for all settlement. Officials linked to the case have said that no ruling is expected before late near year or perhaps in 2026.

Saturday’s incident with the military vessel came two weeks after suspected gangsters shot and injured six Guyanese soldiers from the Venezuelan side of the bordering Cuyuni River, escalating tensions once again between the two. Venezuelan authorities say they were gangsters acting on their own behalf and not that of the state. It also came days after the Trump administration banned Venezuelan oil shipments to the US.

And reacting to the widespread condemnation, Venezuelan Defense Minister, General in Chief Vladimir Padrino López said his country was ready to take action to protect its territory. He said Venezuela was being attacked by North American imperialism through forms like Exxon and others.

“Faced with these incessant attacks, the armed institution, faithful to its anti-imperialist nature, prepares itself in perfect popular military-police fusion, to respond to any threat and preserve the territorial integrity and peace of the Republic. The FANB (Bolivarian National Armed Forces) rejects the biased and partial positions assumed by some regional organizations, which, far from contributing to the solution of the dispute between Venezuela and Guyana, constitute themselves prophets of disaster by promoting hostility and warlike policies,” the minister stated.

The two countries appeared to have come close to war in late 2023 with both massing troops on borders. Caricom leaders, Brazil and other friendly nations quickly organized an emergency summit between the presidents in St. Vincent, binding them both to do nothing to escalate tensions. Guyana says Venezuela has consistently breached the peace accord signed on the island. President Ali says Guyana will stand up to Venezuela.

“This incursion is a matter of grave concern,” We will not tolerate threats to territorial integrity. We are closely monitoring all developments. I want to assure people of Guyana that the government is acting with diligence and resolve. We are addressing this situation with the seriousness it requires,” he said, announcing that the government  had already summoned Venezuela’s ambassador to Guyana to accept a protest note, while the embassy in Caracas has been ordered to do likewise.