By Wilson Beaver & Eduardo Gonzalez | March 03, 2026
For over 100 years tensions have flared between Venezuela and Guyana concerning the Essequibo region. But with the capture of Nicolas Maduro, a rare opportunity for peace and stability has presented itself.
Tensions date back to the 19th century with Venezuela’s rejection of the 1899 Arbitral Award, which settled the Guyanese-Venezuelan border as recognized by international law. Venezuela’s claim of the Essequibo region would strip Guyana of about 160,000 kilometers worth of territory, approximately two-thirds of Guyana’s total landmass. The contested region is home to large quantities of natural resources including gold, diamonds, and most notably, oil. In the years before his capture, Maduro had become increasingly adamant about Venezuela’s ownership of the region and had begun mobilizing troops along the border.
Maduro’s action directly threatened the stability and security of the Essequibo region. In March 2020, two Venezuelan fighter jets entered Guyanese airspace. In March 2025, a Venezuelan naval ship entered Guyanese waters and demanded information from ExxonMobil’s floating production storage and offloading ship Prosperity. Additionally, in February 2025, six Guyana Defense Force soldiers were injured in an ambush attack by a Venezuelan gang while patrolling the border.
However, with Maduro’s removal, stability in the region now seems attainable. Guyanese President Irfaan Ali has stated that Guyana “welcomes the leadership of the President of the United States in reaffirming shared commitments to freedom, democracy, and regional security.”
In terms of security cooperation, the U.S. has always supported Guyanese sovereignty against Venezuelan claims on the Essequibo region. During a visit to Guyana in early 2025, Secretary of State Marco Rubio stated that if Venezuela were to attack Guyana it would be “a very bad day, a very bad week for them.” These words came shortly after Secretary Rubio had finished signing a Memorandum of Understanding for increased security cooperation between the U.S. and Guyana.
This Memorandum of Understanding for security cooperation was later expanded upon in a Statement of Intent for increased military collaboration signed in December of 2025.
These agreements are products of a long history of collaboration. Since 2003, the Florida National Guard has maintained a significant partnership with the Guyana Defense Force, conducting multiple joint training exercises throughout the past two decades.
Beyond security engagement, U.S. investment into Guyana has been immense, especially in recent years. American energy giant ExxonMobil discovered oil in the Stabroek Block in 2015 and has poured billions of dollars into operations there. Exxon’s most recent investment in December 2025 totaled $6.8 billion.
Exxon leads the oil consortium in Guyana with a 45% ownership share. Chevron and China National Offshore Oil Corporation own the remaining 30% and 25%, respectively.
However, the oil industry is not the only sector that has seen an influx of U.S. investment. In the past three years, American hotel companies such as Marriott and Hyatt Place have both opened hotels in Georgetown, Guyana’s capital city. Hilton is set to open two hotels in Georgetown by 2027.
From 2020 to 2024, U.S. investment in Guyana totaled over $15 billion, constituting about 96% of Guyana’s foreign direct investment. In the first quarter of 2025, U.S. investment represented 99%.
Chinese investment in Guyana is significant, with Chinese companies having been awarded hundreds of millions of dollars’ worth of contracts across Guyana’s tourism, construction, energy, and transportation infrastructures. Most significantly, as stated before, Chinese oil company China National Offshore Oil Corporation owns 25% of the Exxon led oil venture in the Stabroek Block.
Much of this investment came after Guyana signed onto the Belt and Road Initiative in 2018, though Chinese companies were present before then. Chinese cooperation with Guyana also includes various donations across different fields, the deployment of Chinese doctors to Guyana, and other “goodwill” actions.
However, relations have cooled somewhat between China and Guyana over China’s stance on the Essequibo region. In April 2025, Guyana criticized China for suggesting Guyana should negotiate with Venezuela regarding the Essequibo region. Furthermore, Guyana rebuked China for failing to take a side on the issue in the light of recent Venezuelan aggression.
In comparison, America has shown unwavering support of Guyanese sovereignty, has arrested the dictator who was threatening Guyana with invasion, and has a long-term interest in the economic development of Guyana. The United States is in a unique position to cement itself as Guyana’s strongest strategic partner in a mutually beneficial enhanced security and economic relationship.
Wilson Beaver is a Senior Policy Advisor for Defense Budgeting and NATO Policy in The Heritage Foundation’s Allison Center for National Security.
Eduardo Gonzalez is a member of the Young Leaders Program at The Heritage Foundation.
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