Essequibo - a region to the east of Venezuela, north of Brazil and south of the Atlantic Ocean - constitutes the western two-thirds of Guyana but is also claimed by the country of Venezuela. Historically, Essequibo was a land part of Venezuela during the Spanish colonial times; however, international arbitrators (Britain, Russia and USA) awarded this region to the then UK colony of British Guiana (known today as Guyana). The long-standing conflict over the Essequibo region has led to tension between the two South American nations, escalating into a modern-day crisis. To understand the modern-day crisis, we must understand the history.
During European colonial times, the Spanish claimed the Essequibo; however, it was the Dutch who established the first settlement in Guyana in 1616. For most of the 18th century, the claim over Guyana shifted multiple times between the French, Dutch and British, with Britain proving successful in establishing British Guiana in 1814. On the other hand, Venezuela attained its independence from Spain and asserted its claim over Essequibo, contesting that its borders spanned as far east as the Essequibo River. In 1841, Robert Hermann Schomburgk demarcated a boundary (the Schomburgk Line) between British Guiana and neighbouring Venezuela, which led to the Essequibo region falling within British Guiana. Venezuela disputed the demarcation of the border, debating that it encroached on Venezuelan land. Tensions grew as gold was discovered in Essequibo, which led to an influx of British settlers. Negotiations were rendered futile, causing Venezuela to sever diplomatic ties with Britain.
Towards the end of the 19th century, Venezuela sought assistance from USA from which an international tribunal was formed to establish peace over the disputed land. The Paris Arbitral Award issued Venezuela control over parts of the Orinoco River mouth and the land to the west of the Essequibo River to Britain. This implied that Britain was awarded 90% of Essequibo much to Venezuela’s dismay. In 1949, it was brought to light that the Russian tribunal leader coerced U.S arbitrators to favour Britain. Hence, Venezuela declared the Paris Arbitral Award invalid and asserted its sovereignty over Essequibo, taking its plea to the United Nations. Following the Geneva Agreement in 1966, a protocol agreed to by both nations delayed actions over disputed territory for 12 years. The status of the territory is subject to the Geneva Agreement, which was signed by the United Kingdom, Venezuela, and British Guiana on 17 February 1966. This treaty stipulated that the parties would agree to find a practical, peaceful, and satisfactory solution to the dispute. They agreed to hand over the issue to the secretary-general of the UN and both nations experienced friendly and peaceful relations during this time. However, tensions rose once oil was discovered off the coast of Essequibo and in the Atlantic Ocean in 2015. The value of the oil is estimated to be USD 40 billion.
For Guyana, one of the poorer countries in South America, this discovery would boost its economic capacity; however, in the same light, it would resuscitate Venezuela’s economic standing as they are on the brink of economic collapse. Hence, the discovery of oil serves as a holy grail for the elevation of both country's GDP. In March 2018, Guyana applied to the International Court of Justice (ICJ) which deemed the matter within its scope. However, Venezuela contested this, but the ICJ reaffirmed its jurisdiction in April 2023. Tensions arose once more in September 2023, when Guyana hosted an oil exploration licenses auction. A national referendum in Venezuela was held to vote on whether to dispute the ICJ’s verdict and have a Venezuelan state called ‘Guyana Esequibo’ but the ICJ stopped Venezuela from proceeding with anything that would change the status quo of Essequibo.
Both presidents of Guyana and Venezuela met in December 2023 in the Caribbean country of St. Vincent and the Grenadines and agreed that there wouldn’t be any form of physical conflict over Essequibo. At the moment, both countries are in peaceful agreement; however, if Venezuela backs away from Essequibo, the valuation of the oil would lead to Guyana becoming the next UAE. Would Venezuela be happy with losing out a piece of the pie? Only time will tell and reveal the fate of Essequibo.
Comments