Why Venezuela Is Clashing With Its Old Foe Exxon Again
The dispute threatens the development of the world’s biggest new deepwater oil play.
Venezuela President Nicolas Maduro has vowed to block Exxon Mobil Corp. from exploring for oil in contested waters off neighboring Guyana. The dispute threatens the development of the world’s biggest new deepwater oil play. It has echoes in the past: In 2007, Venezuela’s then-president, Hugo Chavez, nationalized Exxon’s assets in the country. Exxon moved two vessels away from the disputed region after Venezuela’s navy confronted them last month.
The South American neighbors have been disputing their boundary since the 1800s, with Venezuela claiming everything west of the Essequibo River -- about two-thirds of what Guyana considers its territory. In 1899, an international arbitration panel awarded Britain the territory; Guyana gained independence from Britain in 1966. Venezuela says the 1899 decision was invalid and has periodically demanded the area be handed over, in some cases threatening military action.