Solomon’s Judgement: The international law of exploration and exploitation of shared hydrocarbon resources or how to split the baby - Economicus

by, Armer Juka

Abstract

Two States have both in the same time a valid title under international law to explore and exploit a hydrocarbon deposit. This situation occurs when the hydrocarbon deposit is located in an area where there are overlapping claims by two or more coastal states or when the hydrocarbon deposit straddles upon the maritime boundary between the two countries. The aim of this paper is to enquire the content of international law governing
exploration and exploitation of common or transboundary hydrocarbon resources. It will carry out a survey of State practice in the field of joint development of hydrocarbon resources. The recurrent and extensive practice of entering into joint development agreements will raise the question whether it has crystallized in a customary international rule. If the answer to this question is negative, as argued by this paper, the focus will be to ascertain
the content of the obligation to cooperate between States. This paper will come to an end with some concluding remarks on the legality under international law of unilateral exploration of transboundary resources and by suggesting a potential mitigation strategy that can be adopted by a State willing to go ahead in a unilateral manner.