Abstracts of Articles
Offshore production licences and the Law of Captur
Bryan Clark
By virtue of MC 28 of the Petroleum (Production) (Seaward Areas) Amendment Regulations 1990, in order to ensure maximum ultimate recovery of petroleum and to avoid unnecessary competitive drilling, the Secretary of State is empowered to impose a unitisation agreement on adjacent licence holders when reservoirs of hydrocarbons straddle more than one licence block. In circumstances where MC 28 may not apply, however, the question arises as to whether a licence holder will have any remedy in tort and restitution for oil extracted and "captured" by an adjacent licence holder from beneath his block. this paper seeks to analyse this question by reference to the legal efficacy of a "rule of capture"; both in relation to English common law, and within the specific context of the UK offshore licensing regime.
International petroleum investment - a Hungarian perspective
Ferenc Madai
The partially state-owned Hungarian Oil and Gas Company (MOL) is the only integrated oil company of east-central Europe. As successor to the Oil and Gas Trust, MOL is one of the largest Hungarian companies and has accumulated valuable experience within the petroleum sector. Given that many Hungarian fields have matured in recent times, MOL has been granted a budget of $432 million with which to enter into the exploration and development of medium-sized, low-risk fields in foreign petroleum regimes over the next five years. MOL´s first such agreement was formed with the Tunisian State Oil company in 1991 and since then similar contracts have been signed with Syria, Qatar, Greece and Albania. This paper examines the petroleum fiscal conditions of these countries by reference to two questions: first, how do the regimes of these countries reflect their respective aims to developing their hydrocarbon reserves; and secondly, how do these regimes sit with the strategy of MOL?
Closing the refineries - will Africa bite the bullet?
Nathan Chisimba
Existing evidence suggests that the refining industry in Sub-Saharan Africa is uneconomic, and that continued operation of refineries in the region is a major economic drain on resources that could best be used elsewhere. This paper examines some of the issues that may come to the fore as Sub-Saharan African governments determine the future of refining in the region against the background of the economics and accepted world standard of refining as outlined by various industry experts.
Energy mix in Denmark
Anna Jacobsen
This paper studies Denmark´s changing energy mix from 1972 unto today. It finds that, driven by the oil shocks of the 1970s and later environmental concern, successive Danish governments have implemented aggressive energy policies. These policies have led firstly to substitution of coal for oil, and later from coal to natural gas and renewables.
Transit under the 1994 Energy Charter Treaty
Rainer Liesen
This article describes the procedures set out by Article 7 of the Energy Charter Treaty to enforce the obligations concerning transit matters, and analyses the political and economic background for possible transit disputes. Due to political changes in eastern Europe, the basic structure for transit has changed within the last few years and now holds potential for disputes especially where transit tariffs are concerned. Article 7 provides a specific procedure for transit disputes, although the Energy Charter Treaty offers a general procedure for all kinds of disputes in Articles 26 and 27. The major finding is that the so-called conciliation provision in Article 7(7) only makes sense if no other agreement between the parties to the dispute exists: this is applicable to most transit agreements between former Soviet Union republics. Nowadays, transit agreements cover the dispute issue and will make Article 7(7) superfluous on a long-term basis.
The Spratly Islands - legal status and entitlement
Harold Nikutta
Due to different claims and activities of neighbouring states the legal status of the Spratly Islands is much disputed. The purpose of this paper is to analyse the rival claims and to investigate which entitlement can be derived under the provisions of international law, especially the United Nations Convention on the Law of the Sea.
The impact of Aboriginal Title on mineral rights agreements in Canada: legal and commercial realities
Vance Langford
This paper examines the legal and commercial aspects of the participation of Aboriginal communties in the Candian mining industry. From the legal perspective, the recent Supreme Court of Canada decision in Delgamuukw provides a foundation for an examination of the relationship between the legal status of Aboriginal rights and agreements reached with Aboriginal communities over mineral resources. Once the current status of Aboriginal title is understood, two agreements are examined to observe the relationship between legal status and commercial realities. The analysis concludes that the legal status of Aboriginal title provides the framework for mineral agreements and strengthens the position of Aboriginal communities as stakeholders.
An analysis of the proposed EU Water Framework Directive: community and international perspectives
Alistair Rieu-Clarke
The proposed EU Water Framework Directive is an important initiative, both in relation to the management and utilisation of water within Europe, and as a model of regional agreement covering varied water resources. This paper begins by providing a brief overview of the type of water resources which can be found within Europe. This is followed by an examination of the rationale behind the proposed EU Water Framework Directive. The content of the proposed Directive will then be examined, augmented by a comparative analysis of other international agreements which govern the management and use of water.
Book Review
Economic rights and environmental wrongs: property rights for the common good (R Devlin and R Grafton), Cheltenham, Edward Elgar, 1998, by Ibibia Lucky Worika
