The feud between Venezuela and Guyana over oil rights stems from a long-standing territorial dispute over the Essequibo region, which has been exacerbated by major offshore oil discoveries
. Venezuela has recently intensified its claim, leading to increased tensions and military posturing, prompting international intervention from the UN and the International Court of Justice (ICJ).
Background of the territorial dispute
- The contested territory: The Essequibo region comprises about two-thirds of Guyana's landmass, and though Guyana has administered it since the 1899 Paris Arbitral Award, Venezuela has historically claimed the area. Venezuela renewed its claim in the 1960s and has never formally dropped it.
- Massive oil discovery: The conflict flared up significantly after ExxonMobil discovered vast offshore oil reserves in Guyana's Stabroek Block in 2015. These discoveries positioned Guyana, once one of South America's poorest nations, to become a major oil producer, greatly increasing the economic stakes of the dispute.
- Venezuela's motives: With its own oil industry in decline due to mismanagement and international sanctions, Venezuela's government, led by President Nicolás Maduro, has used the Essequibo dispute to rally nationalist support and distract from its economic collapse.
Recent developments (2023–2025)
- 2023 referendum: In December 2023, Venezuela held a controversial referendum, claiming overwhelming public support to reject the ICJ's authority and annex Essequibo. Despite Venezuela's claims, observers reported low voter turnout.
- Military escalation and incursions: Following the referendum, Maduro's government began establishing a new state, "Guayana Esequiba," and took further actions to press its claim. This included military buildup near the border and, most recently, an armed naval vessel approaching an ExxonMobil oil production ship in Guyana's waters in March 2025.
- International Court of Justice intervention:
- Guyana, which brought the case to the ICJ in 2018, requested additional provisional measures in March 2025 after Venezuela announced plans to hold elections in Essequibo.
- On May 1, 2025, the ICJ reaffirmed its earlier provisional measures and ordered Venezuela to refrain from conducting or preparing to conduct elections in the disputed territory.
- In August 2025, Venezuela filed its Rejoinder in the case, but simultaneously stated it will not recognize any final ICJ decision, claiming the court lacks jurisdiction.
- International response: The international community, including the United States and Brazil, has generally supported Guyana's territorial integrity and called for a peaceful, legal resolution. The U.S. has conducted joint military exercises with Guyana as a show of support.
Current situation
As of October 2025, tensions remain high, with Venezuela continuing to reject the authority of the ICJ while Guyana insists on international law and the court's binding orders. While a full-scale invasion is considered unlikely, the risk of miscalculation or unintended military escalation persists. The final ICJ ruling is still years away, leaving the dispute—and the oil resources at its heart—unresolved.