Exxon, Hess, and China's Cnooc have discovered about 11 billion barrels of oil in the Stabroek Block, located roughly 120 miles off the coast of Guyana. Over $55 billion has been invested to extract almost half of these reserves, and with more discoveries, production is increasing. Prior to this, Guyana had no hydrocarbon industry.
Wood Mackenzie consultants are projecting Exxon and its partners will generate $135 billion in profits from 2024 to 2040, while Guyana will receive $150 billion during the same period. This influx of money is causing inflation in the country.
Venezuela has long claimed the Essequibo region, which includes part of the Stabroek Block. Maduro held a referendum in December asserting this claim and has ordered state-owned companies to issue licenses for exploration and production in the area.
A small but steady military build-up has been observed along the disputed border, and the US has increased cooperation with Guyana, including conducting military drills with its (tiny) defense force.
See the whole article on the FT here:
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