THE USE OF UNITIZATION AND JOINT DEVELOPMENT AGREEMENTS IN PETROLEUM TRANSBOUNDARY DISPUTES

Abstract

The paper discusses the framework used in developing cross border
hydrocarbon resources. The role of states practices, legal regimes and
international law requiring co-operation between two countries in developing
migratory petroleum resources, either through the concept of cross border
unitization for demarcated borders or its alternative the concept of joint
development in dealing with overlapping claims. In the end, the ultimate
objective for countries in co-operating is to maximize the recovery potentials
and thus gain economic benefit for both countries. Petroleum development
provides the financial resource from which a country predominantly depends
to provide services for its citizens and therefore it is imperative for each
petroleum rich state to develop the resource effectively.1 Energy security and
reduced dependence on petroleum imports have over the years become the
motivating factors for countries having cross-border petroleum deposits to
co-operate and effectively develop in a manner that ultimately leads to
financial benefit.