CARACAS, April 14 — Venezuela yesterday said it "strongly” rejects a new oil concession Guyana has granted to US giant ExxonMobil in waters disputed by the two South American neighbors.

ExxonMobil announced Friday that it received the green light from Guyana for exploitation in the Stabroek block, an offshore area with huge deposits.

The project, known as Whiptail and with an estimated investment of US$12.7 billion, "will bring the country’s production capacity to approximately 1.3 million barrels per day,” ExxonMobil president Liam Mallon said in the statement.

ExxonMobil said production at Whiptail would likely not come online until in 2027.

Venezuela "strongly rejects the illegal oil production license granted by... Guyana to oil companies in the Stabroek Block,” Venezuelan Foreign Minister Yvan Gil said in a statement.

"Any concession that Guyana grants or intends to grant in the areas in question is unacceptable, since it violates international law and Venezuela’s sovereignty,” he added.

The discovery of oil in the disputed waters in 2015 intensified the already long-standing boundary dispute between Venezuela and Guyana.

Venezuela claims ownership over the Essequibo region, which has been administered by Guyana for over a century and makes up two-thirds of its territory.

Last week, Venezuelan President Nicolas Maduro enacted a law that considers it as a province of Venezuela. — AFP