Convenience Big Store: Exxon painted as Venezuela's villain in fight over Guyana

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A pedestrian walks past a mural that reads 'The Essequibo Is Ours,' during a referendum vote in Caracas, Venezuela, on Sunday, Dec. 3, 2023. Following massive offshore oil discoveries in the region by Exxon Mobil Corp. and others, and with elections approaching, President Maduro is inflaming regional tension by reviving a long-dormant border dispute over the area known as the Essequibo. Photographer: Gaby Oraa/Bloomberg

Photo by: Gaby Oraa(Bloomberg)

Brewing on the border

Exxon was pulled into the center of a border dispute last week between Venezuela and its oil-rich neighbor Guyana, threatening a key growth area for the oil giant.

Venezuelan voters on Dec. 3 approved a referendum called by Venezuelan President Nicolás Maduro to assert sovereignty over a large swath of Guyana it has long laid claim to, despite international arbitration to the contrary. Later in the week, the Maduro administration accused Exxon of laundering money with its political opponents (Exxon described the claim as "ridiculous and baseless") and started a bidding process for oil leases in Guyanese territory — leases that if awarded could usurp leases currently held by Exxon, observers said.

The simmering dispute could challenge Exxon's ability to develop a region that has been among the world's most productive areas since its discovery in 2015. Chevron, too, saw its potential when it agreed in October to acquire Hess and its assets in Guyana, putting Chevron front and center offshore the South American country alongside Exxon.

The roughly 380,000 barrels per day that Exxon produces in Guyana account for roughly 10% of its 4 million barrels per day globally. The company plans to expand its production there to more than 1 million barrels per day by the end of the decade.