Battle for the Essequibo Region

Caribbean Issues
The Geopolitical Economist
9 min readNov 10, 2023

A Historical Analysis of Venezuela and Guyana’s Contentious Territorial Claims

Battle for the Essequibo Region — created with Image Creator

Introduction

The Essequibo region, a vast and resource-rich expanse of land along the border of Venezuela and Guyana, has long been a source of tension and dispute between these South American neighbors. This article delves into the historical, geopolitical, and economic factors that have contributed to this protracted conflict, the role played by Spain, the Netherlands, the United Kingdom, and the United States of America in shaping the region’s destiny. Additionally, we will explore the connection between this territorial dispute and the global demand for oil, and how powerful nations have used this as a lever to advance their interests in the region.

Map of Guyana, with boundaries to Venezuela, Suriname and Brazil
Map of Guyana, with boundaries to Venezuela, Suriname and Brazil
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I. Historical Background

1. Spanish Colonial Rule

The roots of the Essequibo dispute can be traced back to the colonial era when Spain, as a dominant colonial power, laid claim to vast territories in South America. The Treaty of Tordesillas in 1494 divided the New World between Spain and Portugal, leaving the Essequibo region under Spanish control. Spain’s colonial authority over the region lasted for centuries, with sporadic challenges from other European nations.

2. Dutch Colonization

During the 17th century, the Dutch West India Company established control over parts of what is now Guyana, including the Essequibo River basin. The Dutch developed sugar and tobacco plantations, laying the groundwork for the region’s future demographic makeup. After numerous conflicts, the Treaty of Breda in 1667 ceded the Essequibo region to the Dutch, formalizing their control.

3. British Colonial Rule

In the 18th century, the British Empire began to assert its presence in the Caribbean and South America. The Treaty of Paris in 1814 officially ceded the Dutch-controlled Essequibo colony to Britain, which later merged with its neighboring territories, Demerara and Berbice, to form British Guiana. This marked the beginning of British colonial rule over the Essequibo region.

Boundary lines claimed by Venezuela and the then Bristish Guiana, showing the Schomburgk line
Boundary lines claimed by Venezuela and the then Bristish Guiana, showing the Schomburgk line

4. The Schomburgk Line

The dispute over the Essequibo region intensified in the mid-19th century when Sir Robert Schomburgk, a German explorer commissioned by the British government to carryout a survey, during a four-year expedition for the Royal Geographical Society in 1835 to 1839, from which a sketch of the territory with a line marking what he believed to be the western boundary claimed by the Dutch and the boundaries of British Guiana. In 1841, Schomburgk unilaterally established what is known as the Schomburgk Line, a boundary demarcation that extended British Guiana’s claim far into the Essequibo region, encroaching upon territory Venezuela had long considered its own from territorial delineations established at the time of their independence from Spain in 1821.

5. The Washington Treaty of 1897

The United States, a growing global power at the time, used the Monroe Doctrine — a United States foreign policy that opposed European colonialism in the Western Hemisphere — to claimed the right to intervened in the dispute between Venezuela and the United Kingdom. The Washington Treaty of 1897 saw the establishment of an arbitration tribunal composed of American, British, and Russian representatives. The tribunal tactically ruled in favor of the United Kingdom, effectively validating the Schomburgk Line and extending British control over the Essequibo region.

II. The Role of Oil Interests

The Essequibo dispute became inextricably linked with oil interests during the early 20th century. The discovery of vast oil reserves in the region added a new layer of complexity to the already contentious issue.

1. The Oil Boom

The early 20th century saw the rise of oil as a valuable resource for industrialized nations. The Essequibo region, located in close proximity to significant oil reserves, became a focal point of global interest. The United States, in particular, was keen to secure access to the oil-rich region.

2. The United States’ Involvement

The United States played a critical role in shaping the trajectory of the Essequibo dispute. American oil companies began to operate in the area, prompting the U.S. government to take a keen interest in ensuring stability and access to the oil reserves. The U.S. pressured both Venezuela and the United Kingdom to reach an agreement that would guarantee American access to the oil.

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III. Venezuela’s Territorial Claims

Map of Guyana Essequiba, divided into two zones: zone A comprises the Guyanese territory between the Essequibo and Cuyuni rivers; Zone B covers the Guyanese territory between the Cuyuni River and the Atlantic Ocean. Both zones constitute the area claimed by Venezuela.
Map of Guyana Essequiba, divided into two zones: zone A comprises the Guyanese territory between the Essequibo and Cuyuni rivers; Zone B covers the Guyanese territory between the Cuyuni River and the Atlantic Ocean. Both zones constitute the area claimed by Venezuela.

1. The 1966 Geneva Agreement

The Essequibo dispute remained unresolved even after the Washington Treaty of 1897. In 1966, Venezuela and the United Kingdom signed the Geneva Agreement, which established a mechanism for the peaceful resolution of the territorial controversy. The agreement allowed for the continuation of British Guiana’s independence as Guyana and established a mixed commission to examine the validity of the Schomburgk Line.

2. Venezuela’s Renewed Claims

Venezuela has consistently argued that the 1966 Geneva Agreement did not resolve the issue, maintaining that the border dispute is still pending. In 1983, Venezuela formally withdrew from the Geneva Agreement, leading to a renewed dispute over the Essequibo region.

3. The Bolivarian Revolution

The election of Hugo Chávez as Venezuela’s president in 1999 marked a significant turning point in the dispute. Chávez’s administration took a more assertive stance on territorial claims, frequently invoking the concept of “historical rights.” Chávez’s Bolivarian Revolution sought to challenge existing international agreements and assert Venezuela’s claim over the Essequibo region.

IV. Challenges and Oil Interests

1. Guyana’s Oil Discoveries

Guyana since its independence in 1966 has known the Essequibo region as a major part, over two-thirds, of it’s sovereign territory. Therefore, it is firmly committed to the retention of this territory, even more so due to significant oil discoveries off its coast. Massive reserves of oil and natural gas have transformed the country’s economic prospects. Guyana has entered into agreements with multinational oil companies — mostly US owned, like ExxonMobil and Hess Corporation — to exploit these resources, further complicating the dispute.

2. Geopolitical Tensions

The dispute over the Essequibo region is entangled with wider geopolitical tensions. The United States, under various administrations, has continued to support Guyana’s territorial integrity and its access to oil reserves. In contrast, Venezuela has sought support from countries like Russia and China, making the dispute a pawn in larger global power struggles.

3. Oil Companies and International Interests

The activity of the U.S. and other multinational oil companies in the region, raises concerns about their influence on the dispute. These companies have a vested interest in a resolution that allows them to extract oil from the region without interruptions. This often leads to pressure on the involved governments to reach an agreement, making the resolution of the territorial dispute a priority for oil companies.

V. The Role of International Mediation

1. The United Nations Involvement

The United Nations via the International Court of Justice (ICJ) — the principal judicial organ of the United Nations (UN) — has played a crucial role in mediating the dispute. Both Venezuela and Guyana have referred the matter to the UN, seeking a peaceful resolution through diplomatic means. The UN has appointed a Secretary-General’s Personal Representative to facilitate negotiations between the two countries.

However, the effectiveness of the United Nations as a fair arbitrator in the Essequibo dispute has been called into question. The influence of the United States on the UN, particularly in the context of the oil interests at play, raises concerns about impartiality. The United States’ extensive involvement in the region, both historically and through multinational oil companies, complicates the UN’s role as an unbiased mediator.

Furthermore, the US sanctions on Venezuela’s oil industry add another layer of complexity to the dispute. These sanctions, imposed as a means of pressuring the Venezuelan government, have economic implications that affect the overall dynamics of the conflict. Venezuela’s oil-dependent economy has suffered due to these sanctions, creating additional incentives for the country to secure control over the Essequibo region’s oil reserves.

The intersection of oil interests and political influence calls into question the ability of the United Nations to act as an impartial mediator. The US has a vested interest in the region, and its influence on the UN may impact the negotiation process, potentially hindering a peaceful resolution to the dispute.

2. Recent Developments

The tension surrounding the disputed Essequibo region is escalating as the sun sets over this historically disputed territory. Recent events have taken a more dramatic turn with Venezuela’s announcement of a non-binding referendum set for December 3rd, aiming to gauge the sentiments of Venezuelans on key questions related to the territorial dispute.

The referendum’s questions, although non-binding, carry significant weight. They inquire whether Venezuelans reject the 1899 arbitration decision, recognize the 1966 agreement as the sole binding mechanism for resolution, and oppose Guyana’s unilateral appropriation of Essequibo’s territorial waters. However, the Guyanese government has raised objections to these questions, arguing that they are designed to support Venezuela’s unfounded claims on over two-thirds of Guyana’s territory. Guyana views the referendum as a threat to regional peace, an attempt to undermine its territorial integrity, and a violation of international law.

In response, Venezuela disputes Guyana’s claims, suggesting that they are influenced by ExxonMobil’s involvement. Venezuela accuses the oil giant of corrupting Guyana’s political establishment. The Venezuelan government maintains that its actions concerning the disputed area adhere to international law and the principles of the 1966 Geneva Agreement, advocating for direct negotiations with Guyana to find a practical and mutually acceptable resolution.

Amidst this turmoil, the international community, including nations like Canada and the United States, has expressed support for Guyana, adding a layer of complexity to the dispute. Venezuela perceives foreign interference and joint military exercises between the Guyanese army and the US Southern Command as threats to regional stability.

Given this backdrop, Guyana has turned to the International Court of Justice (ICJ), seeking to halt Venezuela’s referendum on the annexation of the Essequibo region. Guyana views this referendum as an illegal maneuver to support Venezuela’s abandonment of ICJ proceedings and facilitate the annexation of the region. The ICJ’s intervention in this dispute is pivotal in preventing further escalation, as its ruling will determine whether Venezuela can proceed with the referendum.

The resolution of this case will not only affect Guyana and Venezuela but also multinational corporations, including ExxonMobil, that operate in the Essequibo region. This contested territory is believed to hold extensive oil and natural resource reserves, making it a valuable asset for economic development. The dispute’s outcome will decide ownership and control over these resources, shaping the future of both countries’ economies.

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In conclusion, the Essequibo dispute is a multifaceted issue with deep historical roots, tangled geopolitical interests, and a growing economic incentive driven by the global demand for oil. The influence of Spain, the Netherlands, the United Kingdom, and the United States in shaping the region’s history cannot be understated. The involvement of global powers, with a “Do as I say, not as I do” posture, has played a significant role in perpetuating the conflict. The presence of valuable oil reserves in the region has intensified the dispute, with multinational oil companies and international interests exerting influence on the negotiation process.

The future of the Essequibo region remains uncertain, as both Venezuela and Guyana assert their territorial claims. The role of international mediation offers hope for a peaceful resolution, but the path forward is far from clear. As the world’s demand for energy resources continues to grow, the Essequibo dispute is likely to remain a subject of geopolitical importance and international attention for years to come. The fate of this region holds significant implications not only for the two countries involved but for the Caribbean region, the global energy markets and the evolving dynamics of international relations.

The dispute over the Essequibo region is emblematic of the challenges that third-world countries face in navigating the complex web of global geopolitics and economic interests. While a resolution to this longstanding conflict remains elusive, understanding the historical context and contemporary dynamics is essential for comprehending the broader forces at play in the region. Only through dialogue, cooperation, and a commitment to international law can a lasting solution be reached, offering hope for a more stable and prosperous future for both Venezuela and Guyana.

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Caribbean Issues
The Geopolitical Economist

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