Venezuela's coast guard vessels allegedly entered Guyanese waters on March 1, approaching an ExxonMobil production vessel in the disputed offshore region, Guyana's President Irfaan Ali has announced. This latest incident has escalated tensions in the ongoing territorial dispute between the two neighbouring South American countries.

“This incursion is a matter of grave concern,” Ali stated, as quoted by AP. “Guyana's maritime boundaries are recognised under international law. This is a serious development concerning our nation's maritime territory. We will not tolerate threats to territorial integrity.”

Ali indicated that Guyana has notified international allies, including the Trump administration, and summoned Venezuela's ambassador to lodge a formal protest. The US State Department responded swiftly, warning on social media platform X that “further provocation will result in consequences for the Maduro regime.”

"Irfaan Ali is blatantly lying when he states that units of the Venezuelan navy are violating Guyana's territory," the Venezuelan government declared in a statement on its official Telegram account in response to the accusations.

Venezuela's alleged actions have received international blowback, with the Organization of American States (OAS) issuing a statement condemning Venezuela's actions as “a clear violation of international law” that “undermines regional stability,” as reported by Upstream.

This confrontation is the latest development in tensions that have escalated since ExxonMobil's 2015 discovery of massive oil deposits offshore Guyana. With Georgetown's April 2024 decision to grant new contracts to ExxonMobil in the disputed waters, the conflict has intensified significantly.

The territorial dispute centres on the Essequibo region, a mineral-rich area that constitutes two-thirds of Guyana’s territory, and is strategically important due to its proximity to significant offshore oil reserves. 

Venezuela has long claimed ownership of the region, alleging that a boundary commission from the 19th century unlawfully granted the land to Britain, and later to Guyana when it gained independence in 1966. The century-old conflict is the subject of an ongoing case at the International Court of Justice (ICJ), but a final decision is still pending.

Venezuelan President Nicolas Maduro has previously threatened to annex the region by force, while Guyana maintains that the land belongs to them.

Despite a promise made at a summit in late 2023 to refrain from using force, the two countries have yet to resolve the conflict.

While Guyana possesses enormous petroleum reserves that have transformed its economic prospects, its small population of 800,000 and limited military capabilities create significant security vulnerabilities should the dispute continue to escalate. Still, the support that the US government has given to Guyana amid this conflict could serve to discourage Venezuela from pursuing military action.