Released September 21, 2023 | SUGAR LAND
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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--On Tuesday, the Venezuelan government voiced opposition to Guyana's latest offshore auction due to territorial disputes.
Venezuela and Guyana have fought for over a century over their territorial lines. Venezuela claims that its territory extends to the Essequibo River, encompassing most of Guyana's land.
Based on this division, Venezuela claims about two thirds of the territory and offshore waters that include the Stabroek block, Guyana's prolific oil area, where Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) has discovered 11 billion barrels of oil and is producing about 400,000 barrels per day (BBL/d).
The International Court of Justice (ICJ) usually handles the territorial disputes , though the court process has been delayed as Venezuela has opposed the mediation.
In the past, territorial disputes have heightened tensions between the two countries. In 2018, a Venezuelan navy vessel intercepted a ship conducting a survey for ExxonMobil offshore Guyana.
"Venezuela reiterates that any illicit and arbitrary concession that Guyana grants, has granted or intends to grant in the areas in question is unacceptable and violates its sovereign rights, and warns that these actions do not generate any type of rights for third parties that participate in said process," according to a statement by the Venezuelan government.
Despite increased tensions, international energy companies have not been discouraged from investing in Guyana. The success of ExxonMobil and its partners in the Stabroek block has attracted the attention of other global players.
The licensing round opposed by Venezuela was opened last December, with a submission deadline of September 12. According to the Guyanese government, the auction has received considerable interest from international energy companies, with eight of the 14 oil blocks auctioned receiving bids.
Guyanese President Irfaan Ali defended his country's sovereign right to auction these areas.
Guyana's oil resources have skyrocketed the country's energy and economic prospects. Based on current projections, the nation is expected to reach oil production of 1.2 million BBL/d by 2027, with the developments of ExxonMobil's consortium in the Stabroek block.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Venezuela and Guyana have fought for over a century over their territorial lines. Venezuela claims that its territory extends to the Essequibo River, encompassing most of Guyana's land.
Based on this division, Venezuela claims about two thirds of the territory and offshore waters that include the Stabroek block, Guyana's prolific oil area, where Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) has discovered 11 billion barrels of oil and is producing about 400,000 barrels per day (BBL/d).
The International Court of Justice (ICJ) usually handles the territorial disputes , though the court process has been delayed as Venezuela has opposed the mediation.
In the past, territorial disputes have heightened tensions between the two countries. In 2018, a Venezuelan navy vessel intercepted a ship conducting a survey for ExxonMobil offshore Guyana.
"Venezuela reiterates that any illicit and arbitrary concession that Guyana grants, has granted or intends to grant in the areas in question is unacceptable and violates its sovereign rights, and warns that these actions do not generate any type of rights for third parties that participate in said process," according to a statement by the Venezuelan government.
Despite increased tensions, international energy companies have not been discouraged from investing in Guyana. The success of ExxonMobil and its partners in the Stabroek block has attracted the attention of other global players.
The licensing round opposed by Venezuela was opened last December, with a submission deadline of September 12. According to the Guyanese government, the auction has received considerable interest from international energy companies, with eight of the 14 oil blocks auctioned receiving bids.
Guyanese President Irfaan Ali defended his country's sovereign right to auction these areas.
Guyana's oil resources have skyrocketed the country's energy and economic prospects. Based on current projections, the nation is expected to reach oil production of 1.2 million BBL/d by 2027, with the developments of ExxonMobil's consortium in the Stabroek block.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
