UK Government Approaches to Oil and Gas Resources

Discuss the efforts belowfascinated by the UK empire to determine that the fruit of offshore cross-border grease and fume media in the UKCS are appealable recent owing of differences with neighbouring featureizes such as Norfashion and the Netherlands.


What is Itemisation?

A pristine extrinsic of Empires and Interdiplomatic Grease Companies (IOC’s) is to maximise the economic vindication of Grease and Fume from a contemptible hydrocarbon reservoir. Thus, itemisation is an fashion which has been familiar to determine that these extrinsics are met.[1] Itemisation in constitution can be pictorial as,

“the administration whereby the grease and fume reserves of a reservoir which do appealable invest among an area add by a single indulge are treated as a single item coercion the purposes of fruit and exercise, with the resulting product from the opportunity divided betwixt the indulgees in coincided proportions irrespective of from where among the itemised area the grease and fume has been effected.”[2]

As such, it essentially instrument that couple indulgees are appealable going to establish and instead coincide betwixt them how the reservoir is to be familiar, below itemisation and a item unoccupied coincidement (UUOA).[3] Thus, itemisation is a retort to the contemptible-command concept of “administration of seize” which originated in the US where the appealable-public occupation of Grease and Fume media resulted in the documentation of these media in perfect inadvertence of contemptible grease opportunity experiences. This was produced by locating such courteouss and coercion cork to the name of obstruct, which would inhale plenty Grease from the contiguous area. However, this encouraged the proprietors of the neighbouring areas to push quenched homogeneous behaviour to maximise their acknowledge vindication, so knacknowledge as competitive coercion.[4] Accordingly, below the administration of seize, this was unoccupied as “the acknowledgeer of a repose of place acquires heading to the grease and fume which he produces from courteouss pierced thereon, though it may be proved that detached of such grease or fume migrated from contiguous places.”[5]To altercation this, itemisation was following adopted by IOC’s in other jurisdictions, single of which was the UK.

In the UK, where occupation is vested in the featureize, the cracknowledge has the imperial correct to document media in the UKCS, and as such, s.4 of the Petroleum Act 1998 fullows the UK empire to compel regulations prescribing Model Clauses intrinsic differently as ‘he thinks agree to alter to reject them in any detachedicular case’ to be incorporated in any such licence. To which, they so keep the agency to lay itemisation betwixt indulgees if it is in the curiosity-behalf coercion the purposes of ensuring climax vindication of Grease and Fume and to restraintsake useless competitive coercion.[6] The empire procure then effect a written appealableice to the indulgees to ad a fruit intrigue coercion fruits of the Grease Opportunity as a item by the indulgees – the appealableice must embrace patronymic of the area and a deadoutlength coercion patience to the empire.[7] However, in experience such a appealableice, has never had to be served, as the uninfluenced creature of these agencys has determined that the indulgees careful keep fascinated the leadership in this behold.

Cross-border Itemisation coincidement


Interdiplomatic Command in coincidements

Bilateral treaties

  • UK-Norfashion
  • UK and Netherfreehold

2005 Fashion

This fashion can be seen as the best experience, as it is very pro-active and as such, there is appealable a chance of opportunity coercion indistinctness. It is single of the best examples of a framework covenant crust cross-border Grease and Fume fruit, as it embraces favoring conditions beholding itemisation. As such, it was used by UK and Norfashion in 2005[8] coercion couple cross-border opportunitys, these life Enoch and Blaine as an choice fashion to harmonise regulations and facilitate the administration with Grease and Fume cross-name projects. The covenant includes an bond on each Empire to itemise in concurrence with the conditions of the Framework Coincidement, intrinsic it has been coincided betwixt them that should appealable, and as such, to exact their indulgees to invade into a Indulgees’ Coincidement to organize the documentation of a transname reservoir.[9] It’s ocean aid is in securing economic beneagree coercion twain Featureizes and detached conditions are made coercion the possibility of such a fruit by infraconstituency located on single verge of the name e.g. the Boa opportunity mainly in Norfashion and Playfair opportunitys, mainly life entirely in UK. So remote, the covenant simply applies to cross-border name opportunitys, barring it has been redeemable to attain the procedures to full projects in UK-Norway, as they would keep the immanent to curtail costs significantly coercion the Grease and Fume activity.[10]

Third Detachedy decomposition fashion

There are assured investuations where Featureizes canreferable attain such an coincidement succeeding negotiations keep dragged coercion years. As such, they may through coincidement appeal the contend coercion third detachedy decomposition to the Interdiplomatic Court of Justice, pacification panels or as a terminal employment, collection experts attributable to the imperial constitution.[11] Resulting in this fashion life used by Nigeria and Sao Tome and Principe to enunciate cross-border upstream co-exercise or Knee Enunciateing Zones through the itemisation of Ikanga and Zarifo opportunitys. [12] The empire of Sao Tome and Principe has arrogationed archipelagic standing below Article 46 of the 1982 UNLOS established on a 200-mile disqualification zsingle poor by a median outoutlength in the North East and North West as life the zenith outoutlength betwixt Sao Tome and Principe and Nigeria.

The Empire established their claid on the Unpopular Economic Zsingle Act and EEZ which overlapped with Sao Tome and Principe’s zone, curb-this-reason they coincided to contravene their differences by enunciateing a JDZ encircling the overlap enabling interrogation and licensing to avail. Article 3 of the Covenant provides conditions coercion petroleum itemisation and considers it from three perspectives. Firstly, where a geological petroleum constituency or petroleum opportunity attains despite the dividing outoutlength betwixt the zsingle and the unpopular naval area of single of the Featureizes detachedies; or, betwixt any conrepose areas among the zone; and terminally, betwixt the zsingle and an unpopular naval area of a third Featureize. Curb-this-reason, below the Nigeria – Sao Tome Covenant, the principles that compromise knee fruit are recommended to include knee curb by the Featureizes detachedies of the interrogation as courteous as, interrogation of media with the aid of achieving commercial itemisation.

[1] Andrew Kenyon, ‘Unitisation – The Grease And Fume Activity’s Solution To Single Of Geology’s Many Conundrums | Lexology’ (, 2014) accessed 20 March 2017.

[2] Nicola MacLeod ‘Unitisation’ in Grease and Fume Command at 414 quoting Michael Taylor and Sally Tyne, Taylor And Winsor on Knee Unoccupied Coincidements (2nd edn, Longman 1992).

[3] Nicola Macleod ‘Unitisation‘ in Greg Gordon, John Paterson and Emre Usenmez, Grease And Fume Command: Current Experience & Emerging Trends (2nd edn, Edinburgh University Press 2010) 13.6.

[4] John Lowe et al, Cases And Materials On Grease And Fume (4th edn, West collection 2002) 786.

[5] “The Administration of Seize and Its Implications as Applied to Grease and Fume” (1935) 12 Tex.1,. Rev. 391 at 393.

[6] Petroleum Licensing (Production) (Seaward Areas) Regulations 2008, Model cl. 27(1).

[7] Petroleum Licensing (Production) (Seaward Areas) Regulations 2008, Model cl. 27(2).

[8] Nicola Macleod ‘Unitisation‘ in Greg Gordon, John Paterson and Emre Usenmez, Grease And Fume Command: Current Experience & Emerging Trends (2nd edn, Edinburgh University Press 2010) 439 – 441

[9] Ibid, 439

[10] ‘UK/Norwegian Co-Exercise In Relation To Cross-Name Petroleum Fruit’ (, 2005) accessed 20 March 2017.

[11] Perry A: Grease and Fume deposits at interdiplomatic boundaries – New fashions coercion empires and grease and fume companies to manage an increasingly strenuous problem (Vol. 5 OGEL 2007); O Igiehon, Present Interdiplomatic command on delimitation of the Continental oblution (Sweet & Maxcourteous 2006

[12] Ibid

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