The territorial dispute between Venezuela and Guyana over the Essequibo region has gained new significance due to offshore oil discoveries. While the conflict predates oil exploration, the 2015 discovery of the Liza-1 well by an ExxonMobil-led consortium shifted the focus to the Stabroek Block, a key offshore area. ExxonMobil holds a 45% stake in the block, with Hess owning 30% and CNOOC the remaining 25%. Since first oil in 2019, production from the Stabroek Block has reached approximately 1 billion barrels of oil.
For Guyana, oil has transformed the country's economic prospects, while for Venezuela, it has heightened the stakes of a long-standing territorial claim. Venezuela has asserted adjacent maritime claims through decrees in 2015 and 2021, complicating Guyana's development of offshore resources. The dispute is not just about territory but also about the legal and political framework needed to support long-term investment in the energy sector.
The petroleum transformation has also reshaped the dispute within Guyana itself. Historically marked by political rivalry and ethnic tensions, Guyana now views Essequibo as an inseparable part of its national identity. The development of the Stabroek Block has generated unprecedented wealth, with Guyanese leaders aiming to distribute the benefits across society. Despite political divisions, there is a strong consensus in Guyana that Essequibo belongs to the country.
By late 2026, Guyana's Stabroek Block had produced 1 billion barrels of oil, while Venezuela's oil production had rebounded to approximately 1 million barrels per day. The two countries represent contrasting petroleum trajectories: Guyana is building a new offshore industry, while Venezuela is attempting to restore investment in a mature but deteriorating hydrocarbon sector. The territorial dispute remains a significant factor in the region's energy landscape, with the International Court of Justice considering Guyana's request to affirm the validity of the 1899 arbitral award.