Quote:Venezuela and its small neighbor Guyana are locked in a dispute over territorial waters that could slow the development of Guyana's offshore oil and gas reserves.

Guyana, a former British colony, asked the United Nations in September to extend its continental shelf - the area where countries have control over ocean resources such as oil and minerals - toward a region where Venezuela has granted natural gas concessions to Chevron and other companies.

The region lies off the coast of the Essequibo, an area that is roughly the size of the U.S. state of Georgia and makes up about two-thirds of Guyana's territory. It is claimed by Venezuela in a dispute that dates back to the early 19th century.The rival claims sparked small military skirmishes four decades ago.

Though unlikely to lead to fresh violence or a diplomatic rupture, the new dispute could delay energy-poor Guyana's efforts to produce its own crude from an offshore area along South America's eastern shoulder.