Guyana is among risk areas for maritime transport due to the crisis with Venezuela

Guyana was included in the list of areas at greatest risk for maritime transport by the insurance company Lloyd’s Market Association, due to the territorial dispute it maintains with its neighbor Venezuela.

The decision to Joint War Committee from the Lloyd’s Market Association only affects vessels visiting offshore installations in the Guyana Exclusive Economic Zonein addition to “Territorial waters”.

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The news Lloyd’s Market Association warned that the move will likely increase the cost of transporting crude oil from facilities run by ExxonMobil.

“ANDAny additional shipping costs will likely be small at first. Although listing an area means that war risk premiums may be charged, generally They only increase when conflict breaks out”he indicated.

This measure comes after the president of Venezuela, Nicolás Madurowill reiterate on Monday its intention to “fully recover” the Essequibothe territory of almost 160 thousand square kilometers in dispute with Guyana.

The Government of Venezuela also reported on Monday the activation of business units for oil development in the Essequibowhich is managed as if it were yours by Guyana since 1966.

The territorial waters of that region contain large reserves of oil and natural gas, most of them concentrated in the block Stabroekwhich were discovered in 2015 by ExxonMobil.

These reserves, estimated at around 11 billion barrels of oil, led to Guyana to be the country with the highest economic growth in the world (57.8% in 2022).

The president of Guyana, Irfaan Alipromised to continue oil production, ensuring the protection of all operators investing in the Essequibo region.

The conflict worsened after Venezuela approved on December 3 in a unilateral referendum to annex the disputed area, and launched a “action plan”which also includes the establishment of a military division close to the area, with no incursions at this time.

However, Maduro and Ali agreed last Thursday, at a meeting in Saint Vincent and the Grenadines, not to threaten or use force and to refrain. “whether in word or deed, to intensify any conflict or disagreement arising out of any controversy.”

Source: Elcomercio

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I am Jack Morton and I work in 24 News Recorder. I mostly cover world news and I have also authored 24 news recorder. I find this work highly interesting and it allows me to keep up with current events happening around the world.