Venezuela's President Announces Formation of New State Incorporating Land from Guyana
Venezuela's president sparks controversy by creating a new state, Guayana Esequiba, after a disputed referendum allowing annexation of land from Guyana
Venezuela's president announced the establishment of a new state, "Guayana Esequiba," on Tuesday in the wake of a contentious Sunday referendum in which Venezuelan voters voted in favor of annexing land from neighboring Guyana. The disputed area, the densely forested and oil-rich Essequibo region, constitutes about two-thirds of Guyana's national territory. Venezuela has consistently laid claim to the land and has disregarded a 1899 decision by international arbitrators that established the current boundaries.
Guyana has labeled the action as a move towards annexation and an "existential threat."
In an address to lawmakers on Tuesday, President Nicolás Maduro revealed a "new map" of Venezuela that incorporates the contested territory and announced that all residents of the area would be given Venezuelan citizenship. He also announced plans to distribute the map to all schools and public buildings in the country.
Maduro also signed a "presidential decree" creating the "High Commission for the Defense of Guayana Esequiba.
A man walks by a mural campaigning for the referendum on November 28, 2023.
Federico Parra/AFP/Getty Images
The announced measures include the approval of oil, gas, and mining exploration licenses. Maduro has instructed the state oil company PDVSA to establish a dedicated department, "PDVSA-Esequibo," to oversee operations in the region, which are set to commence promptly. Additionally, the president has called for the development of legislation to prohibit the engagement of any companies that have done business with Guyana in contested areas and has given existing companies in the region a three-month window to vacate the area.
The measures also involve conducting a census of residents in the territory to help determine their Venezuelan nationality. US State Department spokesperson Matthew Miller told reporters on Monday that Washington is committed to achieving a peaceful resolution to the border dispute between Venezuela and Guyana.
On Tuesday, April 11, 2023, a ship was seen extracting offshore sand to create an artificial island at the mouth of the Demerara River in Georgetown, Guyana. This coastal port is intended for offshore oil production, as Guyana gears up to become the world's fourth-largest offshore oil producer, surpassing Qatar, the United States, Mexico, and Norway. (AP Photo/Matias Delacroix)
Matias Delacroix/AP
Venezuelans approve takeover of oil-rich region of Guyana. What happens next?
The 1899 award established the land boundary between Venezuela and Guyana as binding unless a new agreement is reached or a competent legal body decides otherwise. Both Venezuela and Guyana are urged to seek a peaceful resolution of their dispute, as it will not be settled by a referendum.
Despite being sparsely-populated and experiencing high rates of poverty, Guyana has undergone rapid transformation since the 2015 discovery of oil off the coast of the Essequibo region by ExxonMobil. With over $1 billion in annual government oil revenue, the country has been able to fuel massive infrastructure projects. Guyana is poised to surpass Venezuela's oil production and become the world's highest per capita oil producer.
Writing for Foreign Policy last year, ahead of the announcement of the referendum, Paul J. Angelo of the Council on Foreign Relations and Wazim Mowla, the assistant director for the Caribbean Initiative at the Atlantic Councils Adrienne Arsht Latin America Center, described the border dispute as a "powder keg," and suggested that Russian President Vladmir Putin's "defiance of international norms" with the invasion of Ukraine "could give new wings to Maduro's territorial ambitions."
Maduro gives a press conference a day after the referendum, on December 4.
Federico Parra/AFP/Getty Images
Guyanese Vice President Bharrat Jagdeo made the comparison during a recent news conference, cautioning that it would be a serious mistake on their part if they were miscalculating the situation based on what happened in Crimea and other places.
A man strolls past a mural advocating for a referendum in which Venezuelans will be asked to consider the annexation of the Guyana-administered region of Essequibo, in the 23 de Enero neighborhood of Caracas on November 28, 2023. Venezuela is set to hold a controversial referendum on December 3 to annex a disputed, oil-rich territory administered by neighboring Guyana. The government of Nicolas Maduro has organized the poll to gauge Venezuelans' interest in annexing the Essequibo region, which constitutes two-thirds of the small country of Guyana but is claimed by Caracas. (Photo by Federico PARRA / AFP) (Photo by FEDERICO PARRA/AFP via Getty Images)
Federico Parra/AFP/Getty Images
A Venezuelan vote on an oil-rich region of Guyana raises concerns of a South American military conflict
"We cannot simply dismiss this as internal politics in Venezuela without taking every possible step to safeguard our country, including collaborating with other nations," he remarked, referring to a meeting in late November between US military officials to discuss continued joint training exercises.
Maduro stands to benefit politically from the referendum on Sunday, amidst a difficult re-election campaign. In October, the Venezuelan opposition gained rare momentum after unifying behind Maria Corina Machado, a center-right former legislator who has criticized Maduro for presiding over skyrocketing inflation and food shortages, in the country's first primary in 11 years.
Phil Gunson, an analyst based in Caracas with the International Crisis Group, believes that when an authoritarian government is in a challenging political situation, it often seeks a patriotic issue to garner support and rally around. Gunson suggests that this is a significant factor in Maduro's actions. This piece includes reporting from David Shortell in Washington for CNN.
