So far much
of the discussion over what is driving the bizarre Trump Administration
intervention into Venezuela centers around the comments of National
Security Adviser John Bolton to claim it’s about oil. In a previous
analysis we looked at the prospects of the huge Chavez Basin, formerly
the Orinoco Basin, said to hold the world’s largest reserves of oil by
some definitions. Now it’s becoming clearer that this de facto war is
about far more than control of the heavy oil of the Chavez Basin in
Venezuela.
First it’s important
to look at which oil companies were already staking various claims on
the region’s oil prospects. Within Venezuela, Chinese oil companies led
by China National Petroleum Corporation, and the Chinese government have
been playing a major role since the Chavez era. In fact the role has
become so great Venezuela’s government owes China some $61 billion.
Because of the financial problems of the Maduro government, China has
been taking debt repayment in form of oil. Since 2010 the Russian state
oil company, Rosneft has been involved in joint projects with the
Venezuela state PDVSA, mainly in the Orinoco/Chavez Belt. Some years ago
Rosneft extended some $6 billion in loans to Venezuela to be also
repaid in oil. A recent statement from Rosneft says that $2.3 billion is
due by end of this year. Rosneft has participation in five oil projects
and 100 percent in a gas project. In addition to CNPC and Rosneft,
France’s Total SA, Norway’s Equinor, and US Chevron all hold minority
stakes in Venezuela projects, with most vowing to stay despite the
political crisis. That raises the question what they know beyond the
well-documented heavy oil of Venezuela.
The real prize?
The real prize that
these powerful international oil giants are eyeing likely lies well to
the east of the Orinoco heavy oil fields where they now operate. The
real prize is the ultimate control over one of the best-kept secrets in
the oil industry, the huge oil reserves of a disputed area straddling
Venezuela, Guyana and Brazil. The region is called Guayana Esequiba.
Some geologists believe the Esequiba region and its offshore could
contain the world’s largest reserves of oil, oil of far better quality
that the heavy Orinoco crude of Venezuela. The problem is that owing to
the decades-long dispute between Venezuela and Guyana the true extent of
that oil is not yet known.
Historically, both
Venezuela and Guyana, a former British colony, laid claim to Esequiba.
In 1983 a so-called Port of Spain Protocol, between the governments of
Venezuela and Guyana, declared a 12-year moratorium on the Venezuelan
reclamation of Esequiba to allow time for peaceful resolution. Since
then a special UN Representative has kept the situation frozen. Neither
party has developed exploration of the reported huge oil deposits in the
territory. In January 2018 the UN Secretary General referred the status
of Esequiba to the International Court of Justice in The Hague, where
it sits today.............https://journal-neo.org/2019/02/17/what-s-not-being-said-about-the-venezuela-oil-war/
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