If Guyana suspends oil licences, Caracas will not explore in Essequibo waters, says Venezuelan oil minister - El Nacional Stabroek News August 6, 2000 Venezuela's oil minister, Ali Rodriguez Araque, has said that his country will not pursue its plan to explore for oil in Guyana's Exclusive Economic Zone (EEZ) off Essequibo if Guyana suspends the exploration licences it has granted in the area. Guyana has issued exploration licences to Century and Exxon to explore for oil in the Essequibo off-shore zone. The move is the latest in Veneuela's campaign to discourage investment in the Essequibo area which it claims as its territory in contravention of the 1899 arbitral award which finally settled the boundary between the two countries. The Venezuelan daily, El Nacional, last week reported Rodriguez as saying that before Guyana's plans were known to Caracas, the state oil company Petroleos de Venezuela (PDVSA) had only contemplated beginning exploration in the area neighbouring the Orinoco delta, and had not planned to enter the territorial sea off Essequibo. "We had respected the controversial zone," he was quoted as saying, "but given that the other party has created an imbalance, we cannot remain with our arms folded because it would be very inconvenient. The country has to prepare itself to give an adequate response to these actions of Guyana, which is granting concessions in an area which is in reclamation and was snatched from Venezuela during the period of British rule." In the paper's August 3 edition, Rodriguez was reported as having indicated that, "if Guyana opts to suspend the concessions granted in the marine area of the Essequibo, the Venezuelan government would likewise suspend its plans in relation to the fourth round of agreements with PDVSA. "The round of agreements in the area of the delta would continue; what we would not do would be to put ourselves in the zone of reclamation until such time as there is a solution; it is a question of common sense." The report also quotes the Venezuelan Energy Minister as observing that preliminary studies on the part of Guyana to which his country had laid claim had shown "that it is an area rich in crude oil and gas." Rodriguez was reported in an earlier edition of the daily (August 2) as commenting that Guyana had taken advantage of the fact that Venezuela's claim to Essequibo had not been actively pursued during previous administrations, but that he expected that the Guyana government would show good sense. Both countries have invited the United Nations Good Officer, Oliver Jackman, for discussions. He is expected to be in Guyana on Tuesday following his visit to Caracas last week. Guyana intends to raise the matter of Venezuela's intensification of its campaign to discourage investment in the Essequibo, and Venezuela is raising the matter of its opposition to the Beal Aerospace concession to establish a rocket launching site in the Waini. El Nacional said that on July 13 the Venezuelan authorities had written to Exxon which together with Mobil is a partner with PDVSA in various projects, that any work it does in the 60 000-square kilometre concession granted to it by Guyana could be considered as illegal and contrary to the sovereign interests of Venezuela. It also alerted the company to the possibility of the controversy developing "into a confrontational situation." A similar letter to Century, the report said, resulted in that company deciding to suspend its operations partly because of the border controversy. In a response to the letter, Exxon's president, Mark Ward, was reported as stating that his company understood the concern shown by PDVSA, which had been transmitted to the competent authorities of the company. The daily said that he had expressed the hope that the border controversy "can be satisfactorily resolved between the governments of both countries." Last month Venezuelan government officials announced their government's intention to offer oil exploration concessions in the zone neighbouring the Delta Orinoco in retaliation for Guyana having done so first. It also announced its intention to have a naval presence in support of the oil exploration activities in the area. The Venezuelan authorities claim that Guyana has breached the Geneva Agreement by granting the concessions to Exxon and Century. At a press conference on July 28, President Bharrat Jagdeo said that "governments past and present have stood steadfast in defence of Guyana's right to invite investors to invest anywhere within the 83,000 square miles of Guyana and in its Exclusive Economic Zone." Every effort would be made, he said, to encourage holders of exploration licences to make full use of the agreements which they had entered into with the Guyana government. Follow the goings-on in Guyana in Guyana Today