Page 4 - LatAmOil Week 04 2021

LatAmOil COMMENTARY LatAmOil

New challenges emerging

from South America

Venezuela may use its territorial dispute with Guyana as an argument for relaxation of US sanctions

LAST year was a tough one for Latin America, Diplomatic factors
which was ravaged by the coronavirus (COVID- The most recent manifestation of these chal-
WHAT: 19) pandemic. In human terms, hundreds of lenges occurred on January 21, when Guyana
Biden is expected in thousands of the continent’s residents died reported that Venezuela’s navy had intercepted
some quarters to defend of this novel illness in 2020, and in economic and detained two Guyanese fishing boats, along
US oil and gas interests terms, lockdowns and reduced demand led with their crews. As of press time, all 12 of the
more vigorously than his to the disruption of business activity in many fishermen were still in Venezuelan custody in
predecessor. countries, as well as a decline in trade, a drop the port city of Guiria.
in GDP and a rise in pressure on social service According to Foreign Ministry officials in
WHY: providers. Georgetown, the incident occurred after a Ven-
Trump is perceived to Moreover, the end of the year did not put an ezuelan naval ship entered Guyana’s offshore
have looked the other end to the pain. exclusive economic zone (EEZ). “The Vene-
way while Lopez Obrador
favoured Pemex and The pandemic has continued into 2021, and zuelan vessel was illegally manoeuvring within
discouraged competition. Latin American countries are still working to Guyana’s EEZ and Contiguous Zone when it
adjust to its economic consequences. intercepted, boarded and commandeered the
WHAT NEXT: In the meantime, new challenges appear to Guyanese fishing vessels,” the ministry said.
Biden is likely to be more be emerging from Venezuela. These challenges It also pressed for the return of the fishing
focused on domestic pri- are diplomatic, legal and economic in nature, boats and their crew members. “Guyana con-
orities in the near term. and they are sure to have implications for the oil demns in the strongest possible terms this wan-
and gas sector. This is partly because Venezuela ton act of aggression by the Venezuelan armed
itself is a major producer but also because it has forces against Guyana and Guyanese citizens,”
the potential to affect third parties, including but the statement said.
not limited to other producers in the region. For its part, Venezuela’s government has
This essay will examine the matter briefly responded by claiming that the Guyanese fish-
(and not comprehensively). ermen were in the wrong.

P4 www. NEWSBASE .com Week 04 28•January•2021