Oil blocks auction: Guyana will not back down from developing resources – Jagdeo on Venezuela’s intimidation tactics

Not surprised by the recent statements made by Venezuela on Guyana’s oil blocks’ auction, Vice President Bharrat Jagdeo has stated that the Guyanese Government will not back down from the development of the country’s resources – both on land and offshore.
Last week, Guyana concluded the bid round of its historic oil blocks’ auction, receiving 14 offers on eight of the 14 blocks offshore that were put up for auction. On Tuesday, however, Venezuela issued a communique in which it protested against this oil blocks’ auction, even though all the blocks are in Guyana’s sovereign territory.
During his press conference on Thursday, VP Jagdeo said none of the six companies that submitted bids during the licensing round has reached out to Government over this latest development.
“We have not heard from any of the bidders that they are concerned about the statement. And it’s not surprising that Venezuela would issue this statement. They have done so almost for every major event when we’ve tried to utilize the economic resources of our country, both on land and in our Exclusive Economic Zone (EEZ),” the Vice President pointed out.
According to Jagdeo, the Guyana Government has appropriately responded to this intimidation tactic by its Spanish-speaking neighbour. In fact, Guyana has also received the support of the United States and the Organization of American States (OAS), who have rejected Venezuela’s aggression.
The Vice President contended that Guyana will not back off from developing its resources.
“No. This is our sovereign Guyanese territory, and the 14 blocks are all in our Exclusive Economic Zone,” VP Jagdeo maintained when questioned on whether Government will pull back from the auction and future developments.
Venezuela is laying claim to more than two-thirds of Guyana’s landmass in Essequibo, and a portion of Guyana’s exclusive economic zone (EEZ) where over 11 billion barrels of proven reserves are estimated to exist, with oil production and exploration activities currently ongoing.
After failed negotiations and good offices processes between the South American nations, Guyana has moved to the International Court of Justice (ICJ) to get a final and binding ruling on the October 3, 1899 Arbitral Award to settle the long-standing border controversy. This matter is still pending in the World Court.
In its communique earlier this week, Venezuela said: “Guyana does not have sovereign rights over these maritime areas and consequently any action within their limits. It is a violation of International Law, as long as they are not carried out through an agreement with Venezuela.”
Venezuela further said 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 Venezuela warns that “these actions do not generate any type of rights to third parties who participate in said process”.

Guyana’s sovereign rights
In response, the Guyanese Government said the statement made by Venezuela is a threat to not only the country, but to regional and international peace and security, as well as to all of Guyana’s current and potential partners.
“Guyana has no doubt that under international law the waters in question form part of its Exclusive Economic Zone, where Guyana alone enjoys sovereign rights over the resources in the sea and beneath the seabed. If Venezuela disputes this, then it is obliged by the United Nations Charter and the Charter of the OAS to employ only peaceful means to seek a resolution. Both Charters prohibit the threat or use of force against another State.
“Guyana therefore implores Venezuela to honour its obligation to pursue only peaceful means to settle any dispute it may have with Guyana, including adjudication before the International Court of Justice…,” the Government said on Tuesday.
Since then, condemnation of Venezuela has flowed from the A Partnership for National Unity/Alliance For Change (APNU/AFC) Opposition, as well as from the Organization of American States (OAS) Secretary General Luis Almagro and US Assistant Secretary of State for Western Hemisphere Affairs, Brian A. Nichols.
Additionally, Guyana has informed major bilateral partners and international bodies of Venezuela’s intimidation, including the United Nations General Assembly on Wednesday as well as the UN Secretary General António Guterres on Thursday.
However, Caracas has not been happy with the US’ “interfering position” on the matter, and in a second statement on Wednesday, the Nicolás Maduro Government rejected “…the opportunist and interventionist position expressed by the Department of State of the United States of America in relation to the claims of the Guyanese government, under the tutelage of the Exxon Mobil company, which aspires to ignore the legitimate rights of the Venezuelan people over its territory.”
It added that the US is trying to “…justify this new attempt to strip Venezuela of its legitimate historical rights, and in turn encourage a dangerous escalation of a controversy that has been addressed for years through diplomatic and peaceful mechanisms.”
Venezuela, in the statement, said it is alerting the international community of the US intentions to create, in our Peace Zone of Latin America and the Caribbean, a military base in Guyana, to turn that country into the spearhead of an aggression operation against the Bolivarian Republic of Venezuela, which would put the peace and stability of the entire region at risk.
“The People and the Government of Venezuela, united in defense of the Homeland, will not give in or be intimidated by pressure, blackmail, or threats when it comes to defending the sacred homeland,” the missive further detailed. (G8)