Guyana, the world’s largest oil reservoir, on the brink of armed conflict

2023-12-09 18:49:00

Forests as far as the eye can see… and the world’s largest reserves of crude oil, per capita, off the coast. Guyana, a former British colony and member of the Commonwealth, attracts, more than ever, all the desires. And for good reason. The Essequibo, its territory of 160,000 km2, twice the size of the Nouvelle-Aquitaine region, or five times larger than the surface area of ​​French Guiana, has revived Venezuela’s interests since oil was discovered there by the American group. ExxonMobil in 2015. Attributed to Guyana by a decision of 1899, this territory, which represents two thirds of the country’s surface area, is today claimed by its neighbor and the world’s leading oil producer.

The oil stakes are such that it might tip this region of the world into armed conflict. JOn Thursday, December 7, the United States announced that it was conducting air military exercises of “ routine » over this Latin American country. Opposite, Nicolas Maduro’s Venezuela showed itself just as determined to defend ground that it considers acquired through a – contested – referendum on Sunday which gave 95% a “Yes” vote to the attachment of this territory. On the Guyanese side, the army is in “full alert”accusing Venezuela of being a “outlaw nation” et “a significant risk for peace and security”.

A historically coveted territory

Located between Surinam, Brazil and Venezuela, Guyana is at the crossroads of the American blocs and their influences. At the time of its independence in 1966, in the midst of the Cold War, it moved closer to the Soviet bloc, Cuba and North Korea. The Essequibo territory is already claimed by Venezuela. But it has few inhabitants. To remedy this, in the 1980s, the Guyanese president then considered artificial repopulation with the immigration of 10,000 Haitians.

Faced with the appetite of capitalist America, in 1983, President Burnham, close to the USSR, warned once morest a possible invasion of the American army in his country to “crush independence”.

At the beginning of the 1990s, the country began a liberal shift and a wave of privatizations. Foreign firms, North American but also Chinese, are rushing to respond to calls for tenders and exploit its resources.

In 1991, theThe oil company Total was carrying out offshore oil exploration. The French group had discovered gas deposits located at sea regarding 100 kilometers northeast of the capital, Georgetown.

Today, TotalEnergies has interests in two fields: Orinduik (15%) and Canje (35%), which are still in the exploration phase.

In total, this small English-speaking country of 800,000 inhabitants (and 125,000 in Essequibo) has reserves of more than 10 billion barrels with new discoveries possible. Its per capita reserves even place it ahead of Brunei, Kuwait and the United Arab Emirates. With ExxonMobil, the other giant Chevron is lying in wait.

In this context, China asked the two countries to resolve their dispute “ in a correct manner »while the Brazilian army announced on Wednesday a strengthening of its presence on its borders with Guyana and Venezuela.

Wood, sugar, gold, diamonds and gas

Also, Guyana is full of natural resources. In addition to oil, located in the heart of the Amazon, it is also a reserve of wood. Coveted by China, gas reserves are also at stake. The Caribbean state, whose national currency is the Guyanese dollar, is also a land of minerals, such as bauxite. Canadian and American bauxite mines and factories were nationalized following the adoption of a republican regime in 1970. It also has gold and diamond reserves. Finally, the economy also relies on exports, particularly sugar. The country is currently developing its trade in agricultural products with Western Europe (bananas, sweet potatoes, mangoes and other products).

Unequally distributed wealth

But Guyana is the third poorest country in the region, with more than 48% of its population living below the poverty line, according to the World Bank. Above all, the State is heavily in debt and its currency has been greatly devalued.

Even recently, on the eve of the last presidential elections, it went through a political crisis due to strong ethnic tensions between the Indian majority and the black minority.

However, the IMF’s predictions contrast sharply with its social situation. Guyana is the fastest growing country in the world and is on track to exceed 100% growth, largely thanks to profits from its oil production and export sector. By the end of the year, its annual growth is expected to be 38%, according to recent GDP forecasts from the International Monetary Fund.