IHS Studies
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An Economic, Political and Petroleum Systems Review of the Hydrocarbon Potential Within Disputed Areas, 2003,
There remain numerous disputed boundaries within proven oil and gas provinces around the world. The economic potential of these disputed areas have led to long-standing issues between neighbouring countries, resulting in stalled E&P operations. Some NOCs have encouraged oil companies to take out exploration licenses in disputed areas, either in the expectation that the competing nation will agree to negotiations and to an eventual settlement, or to establish claim to the prospective zone. |
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| Next Steps |
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Oil companies with obligations in disputed areas hope to be rewarded with a valid exploration permit once the dispute has been settled. While this is a valid strategy for longer-term reward, with limited short term risks, international oil companies can have their operations in disputed areas held up for many years and may spend much time and effort in managing licences in force majeure.
IHS plans a series of ten reports, each one on a separate disputed boundary, intended to assist oil companies, national oil companies and national governments involved in boundary disputes.
IHS is uniquely placed to evaluate the exploration potential, the latest developments at both national and international levels, the relative values of assets under the competing fiscal regimes and the likely effects of a resolution of a boundary dispute on all interested parties. With access to the world’s largest E&P database, in-country representatives, country experts able to analyse scout information and detailed economic databases on all fiscal regimes, there is no company better placed to review the Disputed Boundaries issue.
The International Boundary Research Unit (IBRU) of Durham University has agreed to contribute a section to the report on recent boundary dispute settlements. The IBRU has identified 19 worldwide settlements during the period 1999 – 2003. It will describe each settlement and attempt to identify types of settlements, which can then be used as analogies for the current disputed boundaries. In this way, it may be possible for the Disputed Boundary reports to suggest outcomes and timeframes for the settlement of the disputes.