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