Lloyds declares the Guyana Sea as at risk as the Red Sea
Lloyds, the British insurance company, has added Guyana to its risk list, which also includes the Red and Black Seas, due to rising military tensions.
While there is no immediate threat to the transportation of oil to Guyana, the recent souring of bilateral relations with Venezuela was seen as sufficient reason for the addition.
The dispute between the two neighbors dates back to the late 19th century, when an arbitral tribunal awarded Guyana control of a region called Essequibo. It represents two-thirds of the country's total territory.
The dispute heated up when the United States temporarily lifted oil sanctions on Caracas in an effort to increase the supply of heavy crude for Gulf Coast refineries, but also encouraging the political adventures of Venezuela's Maduro.
In early December, Venezuela held a referendum on its claim to sovereignty over Essequibo, and the majority voted in favor. This sparked concerns of a possible invasion and Venezuelan troops were massed on the border with Guyana. Urgent diplomatic efforts followed leading to talks between the two heads of state.
These ended on a positive note: both pledged not to resort to force to support their respective claims. Nonetheless, Lloyds felt it was appropriate to warn shipowners moving to the region that Guyana's exclusive economic zone may not be the safest place in the world.
However, Guyana has asked the United Kingdom for help in inviting Lloyds to reconsider this decision which significantly increases marine insurance costs.
The news comes as shippers around the world begin avoiding the Red Sea and Suez Canal due to a series of missile and drone attacks on shipping in the area by Yemen's Houthis.
BP also said earlier this week that its tankers would no longer use the route until the attacks were over. This prompted a rapid reaction from the United States, which announced a coalition to strengthen the international military presence in the Red Sea, in order to ensure greater security for ships still using this route, which handles around 14% of the global trade.
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The Lloyds article declares the Guyana sea as at risk as the Red Sea comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lloyds-dichiara-il-mare-della-guyana-a-rischio-come-il-mar-rosso/ on Fri, 22 Dec 2023 07:30:00 +0000.