Guyana and Venezuela have agreed to avoid any escalation of conflict over the disputed border area, the prime minister of St. Vincent and the Grenadines said on Thursday, reading a joint statement after the Guyanese and Venezuelan leaders met on the island.

Two countries pledged not to resort to violence to settle a long-simmering territorial dispute over the oil-rich Essequibo region, a joint statement said.

Guyana and Venezuela "directly or indirectly will not threaten or use force against one another in any circumstances, including those consequential to any existing controversies between the two states," the statement said.

Disputes over the 160,000-square-kilometer (62,000-square-mile) Essequibo region go back decades, but Venezuela has revived its claim, including to offshore areas, in recent years after major oil and gas discoveries.

What is the border conflict about?

Essequibo currently makes up around two-thirds of Guyanese territory and is home to around 15% of its population, with 125,000 Guyanese citizens living in the region.

Venezuela has revived its territorial claim over the region after US energy conglomerate ExxonMobil discovered a significant amount of oil in Essequibo's offshore waters in 2015, transforming Guyana into the world's fourth-largest offshore oil producer.

Tensions rose after Maduro's government recently staged a referendum over Caracas' claim. Some 95% of the voters supported Venezuela declaring itself the region's rightful owner, according to official results; Essequibo's residents were not polled in the non-binding ballot.

Since then, Maduro has started legal maneuvers to create a Venezuelan province in Essequibo. He has also ordered the state oil company to issue licenses for extracting crude in the region.

Dispute dates back to the 19th century

Venezuela claims Essequibo is part of its territory because the region was part of its boundaries during the Spanish colonial era. International arbitrators in 1899 handed Essequibo to former British and Dutch colony Guyana, with the Guyanese government using this decision as its justification for control of the region.   

Litigation at the International Court of Justice (ICJ) seeking a decision over the border dispute is pending.

The ICJ had appealed to Venezuela to refrain from taking action that could influence the case on Essequibo — which Maduro ignored, pressing ahead with his non-binding referendum last weekend.

dh/sms (AFP, Reuters)