Like Oil and Water: How the Guyana-Venezuela Border Dispute Impacts Foreign Oil Investors

Guyana, a hidden gem located on the northern coast of South America, is an emergent nation primarily known as the land of many waters. However, in 2015, this hidden gem captured international attention when the country struck liquid gold: oil. The discovery put Guyana on the map as an attractive foreign investment opportunity, and over the last ten years, Guyana has gone from being one of the poorest nations in South America to the nation with the world’s fastest growing economy. This economic boom, fueled by foreign oil companies, also caught the attention of Guyana’s neighboring country, Venezuela. On December 5, 2023, Venezuelan President Maduro asserted a territorial claim over approximately seventy-five percent of Guyana’s land and ordered all oil companies in the disputed region to leave. This territorial dispute poses a substantial threat to Guyana’s sovereignty and to foreign oil companies that have invested billions of dollars in the country. The rights of foreign investors in Guyana are protected by the country’s Investment Act of 2004. However, many nations also engage in bilateral investment treaties to strengthen protections for foreign investors abroad. This Comment examines local investment laws and the 1989 Bilateral Investment Treaty between the United Kingdom and Guyana to determine the current protections afforded to foreign oil investors during the ongoing border dispute. It also offers recommendations that both secure investor rights and adequately protect Guyana’s natural resources.