The New Timor Sea Arrangement 2001: Is Joint Development of Common Offshore Oil and Gas Deposits Mandated under International Law?

2002 ◽  
Vol 17 (1) ◽  
pp. 79-122 ◽  
Author(s):  

AbstractA new Timor Sea Arrangement is to be adopted by Australia and East Timor upon East Timor's full independence. It is a potentially significant achievement in the prospects for joint development of the petroleum resources in the Timor Gap. This article analyses the legal implications of this latest development in the Timor Gap saga. The new Arrangement implements a modified version of the joint development principle enshrined by the earlier 1989 Timor Gap Treaty much more favourably to the imminent East Timor state. However, the uncertain legal status of the new Arrangement raises questions as to its continuing viability following East Timor's independence. Analysis of this Arrangemcnt suggests that it is sufficiently robust to stand the test of time. More generally, it can now be argued that joint development is mandated under international law as a viable legal alternative to straightforward continental shelf boundary delimitation in the presence of common hydrocarbon deposits.

2006 ◽  
Vol 21 (4) ◽  
pp. 489-522 ◽  
Author(s):  
Chidinma Bernadine Okafor

AbstractThe delimitation of a maritime boundary is not necessarily a panacea for disputes over offshore resources. Neither petroleum reserves, which are fugacious in character, nor fish or marine mammals respect national boundaries. Even successful delimitation may still require a degree of close cooperation if opposite or adjacent states are to exploit such transboundary resources rationally. Such cooperation can be achieved by the concept of joint development. This paper reviews the literature on the joint development of offshore petroleum resources and the controversy surrounding the concept. The paper further examines its applicability as an alternative approach to the Nigeria-Cameroon maritime boundary dispute.


2016 ◽  
Vol 11 (1) ◽  
Author(s):  
Bjarni Már Magnússon

Book review of: Rachael Lorna Johnstone, Offshore Oil and Gas Development in the Arctic under International Law: Risk and Responsibility (Leiden, Brill), 2015, ISBN 978-90-042693-30, hardbound.


2021 ◽  
Author(s):  
Mendos James

Abstract Unitisation has evolved globally as the best mechanism for the joint development of hydrocarbon bearing reservoirs that straddle two or more concessions or licenses. The concept of unitisation is underpinned by the need to avoid competitive exploitation of hydrocarbon resources, maximise its economic recovery, eliminate proliferation of production facilities and reduce development and operating cost.1 The practice of unitisation in the Nigerian oil and gas landscape has gained traction over the years with several straddle fields identified as candidates for unitisation and more than ten (10) agreements for joint development (both Pre Unitisation Agreements and Unitisation and Unit Operating Agreements) executed in the industry. This has occurred under a regulatory regime for unitisation that has evolved from the concise provisions of Section 48 of the Petroleum (Drilling and Production) Regulation 1969 as amended, to the robust Guidelines for Unitisation issued by the Department of Petroleum Resources (DPR) in 2008 (revised in 2019) (Guidelines) in response to the complexities of joint development encountered by parties. While the Guidelines is an excellent attempt at providing a process for unitisation, it does not provide sufficient guidance on the contract regime for unitisation as the bedrock for joint development. A critical look at the contracts governing joint development in the light of global best practices is important to ensure that it meets in an effective manner the objectives of unitisation. A review of the contract regime for unitisation would be incomplete without recognising the impact that underlying contracts governing separate concessions have on unitisation. To this end, the posture of Production Sharing Contracts (PSCs) on gas development in a unit is worth reviewing in the light of the benefits of commercialising gas to the State and the Contractor. This paper reviews the contract regime for unitisation in Nigeria as regulated by the Guidelines and the impact that underlying contracts (particularly PSCs) have on unitisation. The paper will proffer recommendations for inclusion in the Guidelines with a view to improving the process of joint development of shared reservoirs in Nigeria.


Author(s):  
Shihui Cheng

Abstract The safety of offshore oil and gas facilities is a deep concern in relation to the security of China’s fossil energy supply. At present, there are a series of international law protection systems with the offshore facility safety zone system as the core. Most of world’s major maritime countries have established offshore oil and gas facilities protection systems in the form of domestic legislation in accordance with relevant international law, and some of them have adopted measures expanding the scope of their safety zones to strengthen protection. However, there remain some defects in the existing international law system. Therefore, the Chinese government needs to promptly clarify its position on issues related to the offshore facilities safety zone system, and propose the formulation of a specialised convention.


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