Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

Published: 15 October 2022

Fair and Equal Exploitation of Transboundary Natural Hydrocarbon Based on International Law and Standards

Saeid Rabiei Majd

Xiamen University, China

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

10.31014/aior.1992.05.04.459

Pages: 47-66

Keywords: Cross-Border Shared, Fair and Equal Exploitation, Sovereignty, Transboundary Natural Resources

Abstract

Cross-border shared resources have always been one of the legal and economic issues, since they are highly important to governments. Because of the inherent characteristic of governments and their willingness to exercise their sovereignty over the land, resources, and protection of these common cross-border resources, have always been challenging and a subject of disagreement between stakeholder countries, in the legal, economic, and political. These challenges become more serious when it comes to valuable and strategically shared cross-border resources such as oil, and gas. The case in this study is located on the common border between Iran and Iraq, which is the confluence of a valuable oil resources. This region is recognized as Azadegan and Majnoon oil fields. The importance of exploring this area is because it is regarded as one of the largest cross-border oil resource interconnections in the world in a single area. The existence of a huge and common underground oil reservoir, which is very valuable, is the reason for the conflict of interests between the two governments of Iran and Iraq. However, this conflict of interests has not only been created for governments, but it has interfered with the economic interests of international and multinational companies and the rights of present and future generations of human beings (collective/group rights). The escalation of this conflict of interest occurs when governments face shared oil resources onshore or offshore, which may jeopardize the rights of human generations and the environment due to political and economic competition.

References

  1. Adelzadeh, Mohammad Reza. 2004. “Feasibility Study of Micro-Organisms in Iranian Heavy Oil Reservoirs (Microbial Harvesting).” Scientific Journal of Oil and Gas Exploration and Production 9: 24–26.

  2. Andrassy, Juraj. 1951. “Les Relations Internationales de Voisinage.” Martinus Nijhoff.77(127).

  3. Bankes, Nigel. 2014. “Recent Framework Agreements for the Recognition and Development of Transboundary Hydrocarbon Resources.” The International Journal of Marine and Coastal Law 29.4: 666.

  4. Bastida, Ana E., Adaeze Ifesi-Okoye, Salim Mahmud, and James Ross. 2006. “Cross-Border Unitization and Joint Development Agreements: An International Law Perspective.” Hous. J. Int’l L. 29.2: 381–420.

  5. Becker-Weinberg, Vasco, and International Max Planck Research School (IMPRS). 2014. “Joint Development of Hydrocarbon Deposits in the Law of the Sea.” Springer International Publishing 202.

  6. Bloomberg. 2019. “Global Enhanced Oil Recovery Market 2019 Key Players, Demands, Revenue, Regional Analysis and Forecast to 2024.” Bloomberg.com. https://www.bloomberg.com/press-releases/2019-10-03/global-enhanced-oil-recovery-market-2019-key-players-demands-revenue-regional-analysis-and-forecast-to-2024.

  7. Bundy, Rodman R. 1995. Natural Resource Development (Oil and Gas) and Boundary Disputes, in The Peaceful Management of Transboundary Resources. eds. Ridley and Blake, Hildesley, Pratt and Schofield. Graham & Trotman.

  8. Campbell Nicholas J. 1956. “Principles of Mineral Ownership in the Civil Law and Common Law Systems.” Tulane Law Review 31: 305. www.jstor.org/stable/25744324.

  9. Cristina, The. 1938. “House of Lords.” AMERICAN JOURNAL OF INTERNATIONAL LAW32(4): 834.

  10. Dabiri, Farhad, and Seyed Abbas Pourhashemi. 2009. “A Study of the Principles and Concepts of International Environmental Law with a Look at Sustainable Development, Environmental Science and Technology.” Environmental Science and Technology 11(3): 225–215.

  11. David Ong. 1991. “Thailand/Malaysia:The Joint Development Agreement 1990.” INT’L J. OF ESTUARINE & COASTAL L. 57: 61–66.

  12. Du, Yang et al. 2015. “The Rudist Buildup Depositional Model, Reservoir Architecture and Development Strategy of the Cretaceous Sarvak Formation of SouthWest Iran.” Petroleum 1(1): 16.

  13. Fard, Iraj Abdollahie, Alvar Braathen, Mohamad Mokhtari, and Seyed Ahmad Alavi. 2006. “Interaction of the Zagros Fold–Thrust Belt and the Arabian-Type, Deep-Seated Folds in the Abadan Plain and the Dezful Embayment, SW Iran.” Petroleum Geoscience 12(4): 347.

  14. Ghanbari, Saeed. 2011. “A Look at the Process of Iran-Iraq Interactions in the Exploitation of Shared Border Resources.” Exploration and Production Monthly, 90.

  15. Hosseini, Mehdi Shah. 2014. “Comprehensive Pattern of Karun West Oil Field Development.” Scientific- Propagative Journal of Exploration & Production Oil & Gas 122.

  16. Iran and Qatar. 1969. “Agreement Concerning the Boundary Line Dividing the Continental Shelf between Iran and Qatar.” United Nations. https://www.un.org/Depts/los/LEGISLATIONANDTREATIES/STATEFILES/QAT.htm.

  17. Iraqi Parliament. 2005. “Iraq Constitution Law.” Iraq’s Official Gazette. https://zaidalali.com/resources/constitution-of-iraq/.

  18. Khoshmardan, Maryam Abdullahi, Hussein kalantar Huormozi, and Nima Mohammadian. 2014. “Advances and Applications of Nanotechnology in the Field of Drilling and Extraction from Oil and Gas Wells.” In First Horizon Scientific Conference on Chemical Engineering and Petrochemical Sciences and Engineering of Iran, Tehran: First Horizon Scientific Conference on Chemical Engineering and Petrochemical Sciences and Engineering of Iran. https://www.civilica.com/Printable-OCONF01_025.

  19. Lagoni, Rainer. 1979. “Oil and Gas Deposits across National Frontiers.” American Journal of International Law 73(2): 215–43.

  20. Leb, Christina. 2013. 102 Cambridge University Press Cooperation in the Law of Transboundary Water Resources. Cambridge University Press. https://www.cambridge.org/core/books/cooperation-in-the-law-of-transboundary-water-resources/3E28903BC521710654EE5A2A194052F5.

  21. Lipinski, B. et al. 2017. An annual update on behalf of Champions 12.3. SDG Target 12.3 on Food Loss and Waste. http://www.champions123.org.

  22. Matin, Mahdokht, and Zahra Jafari. 2016. Investigating the Status of the Iraqi Oil Industry and the Potentials of Oil Cooperation with Iran.

  23. McCaffrey, Stephen C. 1996. “The Harmon Doctrine One Hundred Years Later: Buried, Not Praised.” Natural Resources Journal 36(3): 965–1007.

  24. Meybodi, Emami, Ghahraman Abdoli Ali, Javad Kashani, Atefeh Taklif, and Parisa Fotouhi Mozafarian. 2019. “Review of Iran and Iraq Strategies for Exploitation of Common Oil Fields.” Quarterly Energy Economics Review 15(60): 24–50.

  25. Mirei, Rahman, and Ali Akbar Dehghan. 2014. “Necessity of Applying Huge Oil Harvesting Methods and Iranian Offshore Oil Company Strategy.” Scientific Journal of Exploration & Production Oil & Gas 98(21–27).

  26. Morris, Joseph W. 1968. “The North Sea Continental Shelf: Oil and Gas Legal Problems.” The International Lawyer: 191–214.

  27. Muskat, Morris. 1949. Physical Principles of Oil Production. New York: McGraw-Hill Book Co.

  28. NaftEMA. 2016. “Iraq Capture Four Iranian Oil Fields in Majnoon.” NaftEMA. http://www.naftema.com/news/45325.

  29. Offshore-technology. 2019. “Majnoon Field.” offshore-technology. https://www.offshore-technology.com/projects/majnoon-field/.

  30. Onorato, William T. 1977. “Apportionment of an International Common Petroleum Deposit.” INT’L & COMP. L.Q. 29: 329–330.

  31. Parliament of Iran. 2006. “General Policies of the System (Statement by the Supreme Leader).” Official Gazette. https://rc.majlis.ir/fa/law/show/99709.

  32. Oil Law Amendment Act(Iran). 2011” Official Gazette. https://rc.majlis.ir/fa/law/show/793088.

  33. Part II Entitled “General Principles” (Articles 5 to 11(, Summaries of the Work of the International Law Commission Shared Natural Resources (Law of Transboundary Aquifers). 2015. https://legal.un.org/ilc//summaries/8_5.shtml.

  34. Petroleum Engineering and Development Company(PEDEC). 2019. “North Azadegan Oil Field Development Plan.” Petroleum Engineering and Development Company(PEDEC). http://pedec.ir/detail=4.

  35. Radiantinsights. 2015. Enhanced Oil Recovery (EOR) Market Analysis By Technology (Thermal, Gas Injection, Chemical) And Segment Forecasts To 2020. Grand View Research.

  36. Roughton, Dominic. 2008. “Rights (and Wrongs) of Capture: International Law and the Implications of the Guyana/Suriname Arbitration.” Journal of Energy & Natural Resources Law 26(3).

  37. Shokrolahzadeh-Behbahani, Sara, Mahdi Zeinali-Hasanvand, and Mohammad-Ali Ahmadi. 2015. “Numerical Modeling of Robust Production Scenarios from Shared Oil Reservoirs.” Journal of Petroleum Exploration and Production Technology 5(1): 55–71. http://link.springer.com/10.1007/s13202-014-0115-0.

  38. Smith, Ernest E. 1989. 1 Hazel Fox Et Al. Joint Development Of Offshore Oil and Gas—a Model Agreement for States for Joint Development With Explanatory Commentary. London: British Institute of International and Comparative Law.

  39. Sixth Five Year Plan Act of Economic, Social and Cultural Development Plan of the Islamic Republic of Iran(2017-2021).” Iran’s Official Gazette.

  40. Snyder, Randall J. 2004. Custom, Power and the Power of Rules: International Relations and Customary International Law. Cambridge University Press.

  41. Szekely, Alberto, Albert Utton, and Ross Shipman Carmen Pedrazzini. 1991. “Transboundary Hydrocarbon Resources: The Puerto Vallarta Draft Treaty.” The Puerto Vallarta Draft Treaty." Nat. Resources J. 31: 609.

  42. Tavakol Habibzadeh, and Reza Agha Tehrani. 2016. “Unilateral Withdrawal of Joint Oil and Gas Fields in the Light of International Law with Emphasis on the South Pars Joint Field.” Energy Law Studies 2(1).

  43. The Associated Press. 2005. “Iraq to Reopen Embassy in Kuwait.” The Associated Press. https://web.archive.org/web/20140102194548/http://abclocal.go.com/wabc/story?section=news%2Fnational_world&id=3413018.

  44. the United Kingdom. 1966. The Petroleum (Production) Regulations ,Schedule 4, Clause 14.

  45. Townsend-Gault, Ian, William G. Stormont. 1995. Offshore Petroleum Joint Development Arrangements: Functional Instrument? Compromise? Obligation? The peaceful management of transboundary resources.

  46. UN. General Assembly. 1966. Permanent Sovereignty over Natural Resources -2158(XXI). https://digitallibrary.un.org/record/203180?ln=en.

  47. “United Carbon Co. v. Campbellsville Gas Co., 230 Ky. 275, 18 S.W.2d 1110 (Ky. Ct. App. 1929).” https://casetext.com/case/united-carbon-co-v-campbellsville-gas-co.

  48. United Nations. 1945. “Charter of the United Nations.” United Nations. https://legal.un.org/repertory/art1.shtml.

  49. United Nations.1958. “Convention on the Continental Shelf.”

  50. United Nations General Assembly. 1973. “Resolution 3129 (XXVIII) on Co-Operation in the Field of the Environment Concerning Natural Resources Shared by Two or More States.” United Nations General Assembly. http://www.cawater-info.net/bk/water_law/pdf/newyork_1973_e.pdf.

  51. Weaver, Jacqueline Lang, David F., and Asmus. 2006. “Unitizing Oil and Gas Fields around the World: A Comparative Analysis of National Laws and Private Contracts.” Houston journal of international law 28: 12–14.

  52. Weems P, Fallon A. 2012. “Strategies for Development of Cross-Border Petroleum Reservoirs.” King & Spalding: Energy Newsletter, Transactional Transactions. https://www.jdsupra.com/legalnews/transactions-strategies-for-development-56025/.

  53. Wronski v. Sun Oil Company, 22 Ill.89 Mich. App. 11, 279 N.W.2d 564 (Ct. App. 1979).” 1979. https://www.casebriefs.com/blog/law/property/property-law-keyed-to-cribbet/interests-in-land-of-another-and-in-natural-resources-affecting-anothers-land/wronski-v-sun-oil-company/.