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Released April 11, 2023 | SUGAR LAND
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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--The United Nations' International Court of Justice (ICJ) said last week that it can rule on a long-running border dispute between Venezuela and Guyana, which involves oil and gas-rich territories, despite Venezuela's objections.
The ICJ declared that it has jurisdiction to rule on the border dispute of the oil- and gas-rich territory of the Essequibo, between Guyana and Venezuela, in what could bring an end to the dispute.
In 2018, Guyana introduced to the ICJ a proceeding against Venezuela's claim of the territory of the Essequibo, which accounts for almost two-thirds of Guyana's territory, opening the case in the international organization.
Venezuela said it would not participate in the ICJ proceedings as the government considered that the court lacked the jurisdiction to hear the case.
The decades-old dispute has gained international prominence after energy companies such as Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) found significant oil deposits at the Stabroek block, also located in the disputed territory.
This oil block is estimated to hold reserves worth 11 billion barrels in 31 oil discoveries across Stabroek. With these discoveries, Guyana, the newest oil state, is expected to produce more than 1 million barrels of oil per day (BBL/d) by 2027 through the construction and development of the Liza-1, Liza-2, Payara, and Yellowtail projects. Currently, Guyana is producing more than 300,000 BBL/d with the Liza-1 and Liza-2 projects as it awaits the start of the Payara platform.
Venezuela has criticized these energy developments, saying that they are taking place in the disputed land. This has raised the tension between the nations, leading Venezuelan navy vessels to seize ships conducting activities offshore the Essequibo, including an oil research vessel in 2013.
A long time could pass before this issue is resolved following the ICJ announcement.
Guyanese President Irfaan Ali said in a press conference that he welcomed the ICJ's decision and that his country is committed to resolving the dispute peacefully with the court's ruling.
Meanwhile, in a statement, the Venezuelan government said it does not recognize the judicial mechanism as a way to resolve the issue. Venezuela will "evaluate the implications exhaustively, and it will adopt measures at its disposition for the defense of its legitimate rights and territorial integrity," the government said in a statement.
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).
The ICJ declared that it has jurisdiction to rule on the border dispute of the oil- and gas-rich territory of the Essequibo, between Guyana and Venezuela, in what could bring an end to the dispute.
In 2018, Guyana introduced to the ICJ a proceeding against Venezuela's claim of the territory of the Essequibo, which accounts for almost two-thirds of Guyana's territory, opening the case in the international organization.
Venezuela said it would not participate in the ICJ proceedings as the government considered that the court lacked the jurisdiction to hear the case.
The decades-old dispute has gained international prominence after energy companies such as Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) found significant oil deposits at the Stabroek block, also located in the disputed territory.
This oil block is estimated to hold reserves worth 11 billion barrels in 31 oil discoveries across Stabroek. With these discoveries, Guyana, the newest oil state, is expected to produce more than 1 million barrels of oil per day (BBL/d) by 2027 through the construction and development of the Liza-1, Liza-2, Payara, and Yellowtail projects. Currently, Guyana is producing more than 300,000 BBL/d with the Liza-1 and Liza-2 projects as it awaits the start of the Payara platform.
Venezuela has criticized these energy developments, saying that they are taking place in the disputed land. This has raised the tension between the nations, leading Venezuelan navy vessels to seize ships conducting activities offshore the Essequibo, including an oil research vessel in 2013.
A long time could pass before this issue is resolved following the ICJ announcement.
Guyanese President Irfaan Ali said in a press conference that he welcomed the ICJ's decision and that his country is committed to resolving the dispute peacefully with the court's ruling.
Meanwhile, in a statement, the Venezuelan government said it does not recognize the judicial mechanism as a way to resolve the issue. Venezuela will "evaluate the implications exhaustively, and it will adopt measures at its disposition for the defense of its legitimate rights and territorial integrity," the government said in a statement.
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).
