Venezuela has stepped up its tempo in relation to the ongoing dispute with Guyana over the Essequibo region. The country has now reportedly told ExxonMobil (NYSE: XOM) and other offshore oil producers in the region that they have 90 days to stop operations in the disputed waters off the coast of Guyana.
The development follows reports from yesterday that it directed state-owned companies to begin the exploration of oil, gas, and mines within Essequibo. To facilitate this, Venezuelan President Nicolas Maduro ordered the establishment of local subsidiaries for Venezuelan public companies, including the oil giant PDVSA and mining conglomerate Corporación Venezolana de Guayana.
READ: Venezuela’s Maduro Escalates Tension with Orders To Explore Oil in Guyana
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Army major general Alexis Rodriguez Cabello meanwhile has been named the temporary sole authority of the Guayana Esequiba defence zone, which covers the land claimed by Venezuela within Guyana.
ExxonMobil for its part has become the scapegoat for much of Venezuela’s actions, with Maduro reposting on social media a comment that the Guyana president is an “ExxonMobil slave,” while supportive publications describe the referendum as a vote for “Venezuelan sovereignty against companies such as ExxonMobil.“
Guyana for its part has reached out to its allies for support, including the USA, Brazil, the United Kingdom, and France.
Information for this briefing was found via Bloomberg, The Guardian, Reuters, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
