Border disputes in offshore oil exploration and exploitation : potential solutions

Abstract

This thesis considers the relatively short history of maritime border disputes pertaining to claims over hydrocarbon (particularly oil) resources and assesses the means by which a selection of these were resolved, with the aim of identifying the solutions that have proved most expedient. With these in mind, focus is then shifted to the future, when, as the resource base inevitably diminishes, such disputes are likely to increase and intensify, calling for a bolstering of legal responses thereto. Suggestions are made as to which, from the evidence, are the more viable potential solutions. Amicable arrangements, resulting from bilateral or multilateral negotiations, are found to be ideal. Consequently, paramount importance is accorded to cooperative agreements, a number of which are inspected closely. Special attention is paid to those pertaining to oil deposits straddling maritime boundaries or situated in disputed maritime zones. It is proposed that, apart from being excellent dispute settlement mechanisms, these arrangements may, insofar as offshore oil is concerned, serve as tools for the avoidance of disputes, thus facilitating optimal use of available resources - leading to economic prosperity and energy security - while maintaining good inter-State relations. In the context of effective ocean governance, the reality of States' interdependence, which is acknowledged and addressed by the notable United Nations Convention on the Law of the Sea of 1982, pervades this thesis. It is posited that, in any case, be it dispute settlement or prevention (the latter being preferable), the solutions which ought to be striven for are those that minimise repercussions on all stakeholders, whether they are developed or developing States, or non-State actors. In particular, a chapter is devoted to international oil companies, as major players in the oil and gas industry without whose participation most States would be unable to reap benefits from mineral resources.