Panel No. 2:
Energy and Economic Development
Comments by Paul L. Kelly
Moderator & Commentator
Note: Numbers of figures refer to numbering in the Technical Study.
Figure 1. Summary chart of all 200M limits (in pale blue)
and areas of OCS relating to submissions made by coastal
States up to 31 January 2010 (in red).
Payments and contributions with respect to the exploitation of the
continental
shelf beyond 200 nautical miles
1 The coastal State shall make payments or contributions in kind in respect
of the exploitation of the non-living resources of the continental shelf
beyond 200 nautical miles from the baselines from which the breadth of the
territorial sea is measured.
2 The payments and contributions shall be made annually with respect to
all production at a site after the first five years of production at that site.
For the sixth year, the rate of payment or contribution shall be 1 per cent of
the value or volume of production at the site. The rate shall increase by 1
per cent for each subsequent year until the twelfth year and shall remain at
7 per cent thereafter. Production does not include resources used in
connection with exploitation.
3 A developing State which is a net importer of a mineral resource
produced from its continental shelf is exempt from making such payments
or contributions in respect of that mineral resource.
4 The payments or contributions shall be made through the Authority,
which shall distribute them to States Parties to this Convention, on the
basis of equitable sharing criteria, taking into account the interests and
needs of developing States, particularly the least developed and the landlocked among them.
Figure 2. Stereographic polar projection of the
Arctic Ocean region, illustrating area within
200M of baselines in pale blue, and beyond this,
the areas currently submitted by coastal
States in respect of continental shelf beyond the
200M limit. Purple - The Russian Federation
(area constructed on sectoral principle, for
discussion see text); Blue – Norway; Olive green –
Iceland; Lime green – Denmark. Hatched
colouring denotes where shelf areas overlap). Note
that if boundaries were drafted on equidistant
principles (see boundaries marked in dashed
lines), potential areal coverage of each coastal
State’s OCS is as follows: USA -ca. 75,000
sq km; Denmark - ca. 45,000 sq km; Canada >200,000 sq km.; Russia ca. 310,000 sq km.
Grey areas denote possible areas beyond national
jurisdiction – the Area. Green lines locate
approximate boundaries where constructed on a
sectoral basis (i.e., to meet at the geographic
North Pole). This solution is favoured by Russia,14
but apparently not by neighbouring States.15
Further discussion on the likely maritime
boundaries in the region beyond 200M is outside
the scope of this report. A more recent, partial
version of the construction in Figure 2 has been
produced by the International Boundaries
Research Unit, Durham, UK.16 Chart provided by
NOCS UNCLOS Group.17
Figure 3. Stereographic polar projection of Antarctica, illustrating area within 200M of
baselines in pale blue, and beyond this, the areas currently submitted by coastal States in respect
of continental shelf beyond the 200M limit. Green – Australia submission;21 Blue – Norway
submission;22 Orange – Joint submission between France and South Africa;23 Purple – Argentina
submission;24 Red – UK submission;25 (hatched where overlapping); Grey – New Zealand
submission;26 chart provided by NOCS UNCLOS Group.27 Area south of 60°S28 hatched in open
grey lines.
Figure 11. Potential
Canadian Arctic OCS
area (source: Canadian
Geological Survey http://www.gsc.nrcan.gc.
ca/org/atlantic/unclos_e
.php).
Table 1. Summary of recent annual hydrocarbon production for nine coastal States
with potential to successfully secure exploration and exploitation rights over their
OCS (source: International Energy Authority, 2007), and possible timing of initial
revenue resulting from implementation of article 82
Coastal State
- year of
ratification or
accession to
UNLOSC in
brackets
Current
EEZ (Mill
sq km)
Brazil
(1988)
3.66
Potential
area of
continental
shelf
beyond
200M (Mill
sq km)
0.926
Canada
(2003)
China
(1996)
Australia
(1994)
New
Zealand
(1996)
Angola
(1990)
2.75
1.3
110,389
2030 (e)
2036
0.74
N/A
186,318
2030 (f)
2036
Leading expertise in deep
water production
technology
Oil production already
mature at 200M
Rapidly rising Demand
6.05
3.4
21,559
2009
2015
Multiple OCS Potential
4.08
1.7
1,874
2009
2015
0.5
0.047
84,908
2011
2017
Japan
(1996)
4.48
0.75
286
2012
2018
India
(1995)
USA
2.3
>1.0
34,117
2028
2034
Coastal State with rising
demand and modest
reserves
Resource at deep water,
conventional hydrocarbons
and gas hydrates (g)
Coastal State with rising
demand and modest
reserves
Rapidly rising Demand
11.35
>1.0
249,791
2030
2036
Annual
hydrocarbon
production
(a) (Crude
oil, Unit:
1,000 tonnes)
89,137
Estimated
date of
establishment
of the outer
limits of the
continental
shelf (b)
2011 (d)
Estimated
date of
initial
revenue
yield under
Article 82
(c)
2017
Special factors relating to
coastal State
Date of accession to the
Convention undecided