Joint Development of Hydrocarbon Deposits in the Law of the Sea, download eBook pdf

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Hamburg Studies on Maritime Affairs
Volume 30
Edited by
Jürgen Basedow
Monika Breuch-Moritz
Peter Ehlers
Hartmut Graßl
Tatiana Ilyina
Florian Jeßberger
Lars Kaleschke
Hans-Joachim Koch
Robert Koch
Doris König
Rainer Lagoni
Gerhard Lammel
Ulrich Magnus
Peter Mankowski
Stefan Oeter
Marian Paschke
Thomas Pohlmann
Uwe Schneider
Detlef Stammer
Jürgen Sündermann
Rüdiger Wolfrum
Wilfried Zahel

please mail to us (info(@)iilss.net) or send your request in contact page for buying this book with 50% discount

Vasco Becker-Weinberg
Joint Development
of Hydrocarbon Deposits
in the Law of the Sea

please mail to us (info(@)iilss.net) or send your request in contact page for buying this book with 50% discount

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 The Concept and Purpose of Joint Development
of Hydrocarbon Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1 The Concept of Joint Development. . . . . . . . . . . . . . . . . . . . 5
2.2 The Purpose of Joint Development . . . . . . . . . . . . . . . . . . . . 8
2.2.1 Characteristics of Hydrocarbon Deposits . . . . . . . . . . 8
2.2.2 Exploration and Exploitation Activities
of Offshore Mineral Resources. . . . . . . . . . . . . . . . . 9
2.2.3 From the Rule of Capture to Efficient
Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.2.4 Distinction Between Unitization
and Joint Development . . . . . . . . . . . . . . . . . . . . . . 18
2.3 The Role of Private Entities. . . . . . . . . . . . . . . . . . . . . . . . . 21
3 Joint Development Agreements in International
Law in General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3.1 Sovereignty, Sovereign Rights and Jurisdiction
of Coastal States. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3.1.1 Maritime Areas Within and Beyond
National Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . 23
3.1.2 Mineral Resources in the EEZ, the Continental
Shelf and the Area . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.1.3 In the EEZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3.1.4 On the Continental Shelf . . . . . . . . . . . . . . . . . . . . . 29
3.2 Power to Negotiate and Enter into Joint
Development Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . 35
3.2.1 Agreements Signed Before or After
Maritime Delimitation. . . . . . . . . . . . . . . . . . . . . . . 35
3.2.2 Relevant Principles of the Law of Treaties . . . . . . . . 36

3.2.3 Joint Development Agreements and Third States . . . . 38
3.2.4 State Succession in Joint Development
Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
3.3 Attempts to Propose Rules on Common Mineral Resources
and to Standardize State Practice . . . . . . . . . . . . . . . . . . . . . 41
3.3.1 The Work of the International Law Commission
on Shared Natural Resources . . . . . . . . . . . . . . . . . . 41
3.3.2 A Need for a Model Agreement? . . . . . . . . . . . . . . . 43
4 Mineral Resources Clauses in Delimitation Treaties
and Joint Development Agreements . . . . . . . . . . . . . . . . . . . . . . 49
4.1 Outline of State Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
4.1.1 Maritime Delimitation Agreements . . . . . . . . . . . . . . 49
4.1.2 Relevance of Mineral Resources Clauses. . . . . . . . . . 58
4.1.3 Obligation to Include Mineral Resources Clauses . . . . 58
4.1.4 Non-compliance with Mineral Resources Clauses . . . . 59
4.1.5 States’ Obligation in the Absence of Mineral
Resources Clauses . . . . . . . . . . . . . . . . . . . . . . . . . 61
5 Joint Development Agreements in Cases of Transboundary
Hydrocarbon Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
5.1 Basis for Joint Development After the Delimitation
of Maritime Boundaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
5.2 States’ Obligations Regarding Transboundary
Hydrocarbon Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
5.3 Rights and Freedoms of Other States . . . . . . . . . . . . . . . . . . 73
5.4 Legal Regime of Offshore Installations and Structures . . . . . . 74
5.4.1 Installations and Structures Within and Beyond
National Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . 74
5.4.2 Classification of Oil Rigs . . . . . . . . . . . . . . . . . . . . 76
5.4.3 Construction and Operation . . . . . . . . . . . . . . . . . . . 80
5.4.4 Removal and Decommissioning . . . . . . . . . . . . . . . . 82
5.5 States’ Responsibility for Pollution from Seabed Activities
Subject to National Jurisdiction . . . . . . . . . . . . . . . . . . . . . . 88
6 Joint Development Agreements in Areas of Overlapping
Claims: Legal Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
6.1 Economic Activities in Disputed Maritime Areas . . . . . . . . . . 93
6.2 Provisional Arrangements of a Practical Nature
(Article 83(3) of UNCLOS) . . . . . . . . . . . . . . . . . . . . . . . . . 95
6.2.1 Relevant Aspects . . . . . . . . . . . . . . . . . . . . . . . . . . 95
6.2.2 Rights and Duties of Claiming States . . . . . . . . . . . . 102
6.2.3 Rights and Duties of Other States. . . . . . . . . . . . . . . 102
6.2.4 Settlement of Disputes (Part XV of UNCLOS) . . . . . 103

6.3 Identifying the Joint Development Area . . . . . . . . . . . . . . . . 104
6.4 Protection and Preservation of the Marine Environment
in Disputed Maritime Areas . . . . . . . . . . . . . . . . . . . . . . . . . 111
6.4.1 Pollution from Seabed Activities . . . . . . . . . . . . . . . 111
6.4.2 Obligation to not Cause Transboundary
Harm or Damage . . . . . . . . . . . . . . . . . . . . . . . . . . 116
6.5 Essential Legal and Functional Aspects
of Joint Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
6.5.1 State Participation in Exploration
and Exploitation Activities. . . . . . . . . . . . . . . . . . . . 120
6.5.2 Creation of Joint Entities . . . . . . . . . . . . . . . . . . . . . 123
6.5.3 Access to Operations . . . . . . . . . . . . . . . . . . . . . . . 126
6.5.4 Safeguard of Pre-existing Rights . . . . . . . . . . . . . . . 128
6.5.5 Taxation, Sharing of Costs and Revenues . . . . . . . . . 129
6.5.6 Employment, Health and Safety . . . . . . . . . . . . . . . . 132
6.5.7 Protection and Preservation of the Marine
Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
6.5.8 Applicable Law and Settlement of Disputes
with and Between Operators . . . . . . . . . . . . . . . . . . 137
7 Joint Development Agreements in Areas of Overlapping
Claims: State Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
7.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
7.2 The Asia-Pacific Region . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
7.2.1 A Case-Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
7.2.2 The Timor Sea . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
7.2.3 The Northeast China Sea. . . . . . . . . . . . . . . . . . . . . 151
7.2.4 The Southeast China Sea. . . . . . . . . . . . . . . . . . . . . 155
7.3 Lessons Learned. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
8 The Role of Mineral Resources in Maritime Delimitation . . . . . . 167
8.1 The EEZ and Continental Shelf Boundaries . . . . . . . . . . . . . . 167
8.2 Consideration of Special or Relevant Circumstances . . . . . . . . 175
8.2.1 Concept. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
8.2.2 Mineral Resources . . . . . . . . . . . . . . . . . . . . . . . . . 177
9 Resources that Lie Between the Continental Shelf
and the Area (Article 142 of UNCLOS). . . . . . . . . . . . . . . . . . . . 187
9.1 The Common Heritage of Mankind . . . . . . . . . . . . . . . . . . . 187
9.2 Delimitation and Use of the Area . . . . . . . . . . . . . . . . . . . . . 190
9.3 Cooperation Between Coastal States and the Authority . . . . . . 192
9.4 Due Regard and the Duty of Information . . . . . . . . . . . . . . . 194

9.5 Sharing the Common Resources of the Area
and the Continental Shelf . . . . . . . . . . . . . . . . . . . . . . . . . . 196
9.6 Protection of the Marine Environment from Pollution
Caused by Activities in the Area . . . . . . . . . . . . . . . . . . . . . 199
10 Conclusions and Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
10.1 Main Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
10.2 Outlook for the Progress of Joint Development
in the Law of the Sea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
List of Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
About the International Max Planck Research School
of Maritime Affairs at the University of Hamburg . . . . . . . . . . . . . . . 249