Arctic challenges

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  • .

    ARCTIC CHALLENGES.

    By

    EGIL BERGSAGER

    FOCUS ARCTIC PETROLEUM POTENTIAL,

    DELIMITATION NORWAY RUSSIA, JAN MAYEN AGREEMENT AND SVALBARD BOX,

    TORE VORREN SEMINAR. TROMS. MARCH 18 2015

  • North of the Arctic Circle

    Total area >21million km2

    6% of the Earths surface

    Land area ~8million km2

    Shelf area (7million km2

  • The Arctic

    IBCAO, Martinsson et al 2000

    Arctic

    N. Africa, Caspian Sea, M. East

    25% of World undiscovered resources lie in the Arctic

    Source: USGS.

    Rest of the

    World

  • from L.P. White, R.S. Bishop and D.L. Gautier, 2005

    The Arctic is largely unexplored; Resources are not well understood

  • NORTHERN PASSAGE. A NEW SHIPPING ROUTE

  • Barents Sea

    1.2 million km2. More than twice the size of the total Gulf of Mexico

  • New maritime border line

    Formal negotiations started in Moscow November 25th, 1974.

    Agreement signed in Oslo April 27th, 2010 when D.A.Medvedev visited Oslo.

  • FORMER DISPUTED AREA I

    AREA AROUND 175 000 KM

    LARGER THAN THE NORWEGIAN NORTH SEA.

    CONSIDERED VERY PROSPECTIVE

    NEGOTIATIONS SINCE 1974

    THE PRESENT AUTOR ON NORWEGIAN NEGOTIATING TEAM 13 YEARS.

    LOTS OF CHAMPAGNE, BALLET AND CAVIAR. NOT MUCH BORDERLINE BEFORE PUTIN

    AND MEDVEDEV

    BOTH NATIONS ARGUED FROM LAW OF THE SEA

    NORWAY: PRINCIPLE OF EQUIDISTANCE. MEDIANLINE.

    RUSSIA: SPECIAL CIRCUMSTANCES

  • FORMER DISPUTED AREA II

    FAIR DEAL.

    50% SHARE TO EACH COUNTRY.

    EXPERIENCE THAT THE LARGE NATIONS TAKE THE BROTHER SHARE.

    NORWAY-RUSSIA COMMON BORDER MORE THAN 1000 YEARS

    NO WAR

    GOOD BASIS FOR COOPERATION

    OFFICIAL NAME OF THE TREATY:

    MARINE DELIMITATION AND COOPERATION

  • JAN MAYEN FIRST TIME GEOLOGIC CRITERIA ACCORDING TO THE NEW LAW OF THE SEA WAS

    APPLIED IN DELIMITATION. 76. Geologic prolongation

    AREA OF COOPERATION N AND S OF BORDERLINE.

    ICELAND 25% CARRIED INTEREST N OF BORDERLINE. NORWAY 25% NOT CARRIED S OF BORDERLINE. EXPLORATION HIGH RISK FOR A SMALL ICELAND ECONOMY NOT RECOMMENDED.

    MAIN NORWEGIAN INTEREST DISPUTED AREA IN THE BARENTS. NORWAY WAS STRONGLY AGAINST AREA OF JOINT JURISDICTION. DEMONSTRATED THAT FOLLOWING AN ESTABLISHED BORDERLINE AREAS OF COOPERATION

    COULD BE ESTABLISHED.

    JAN MAYEN AGREEMENT STUDIED BY THE POPE. THE PRINCIPLE OF ACCESS TO POSSIBLE RESOURCES ON THE OTHER SIDE OF AN ESTABLISHED

    BORDERLINE THE POPE MEDIATOR BETWEEN CHILE AND ARGENTINA

  • Barents Sea

    1.2 million km2. More than twice the size of the total Gulf of Mexico

  • SVALBARD BOX I

    SVALBARD TREATY PART OF VERSAILLES PEACE TREATY

    1920

    ISANDS WITHIN 10E, 74N, 35E AND 81N

    PART OF ROYAL KINGDOM OF NORWAY

    NORWEGIAN ADMINISTARTION ESTABLISHED 1925

    39 COUNTRIES HAVE SIGNED THE TREATY

    VERY LOW TAX LEVEL

    SHALL ONLY COVER ADMINISTRATION OF ISLANDS

    RIGHT TO EXPLORE AND DEVELOP IF COMMERCIAL DISCOVERIES ARE MADE

    INDIRECT MEASURES, i.e. STRUCTURES DEFINED BY SEISMIC ACCEPTED AS

    BASIS OLI AND GAS LICENSES

  • SVALBARD BOX II

    LEGAL STATUS OF SHELF AREA QUESTIONED

    THE NORWEGIAN VIEW CLEAR:

    THE TREATY APPLIES ONLY WITHIN ISLANDS AND THEIR TERRITORIAL WATERS

    STATED IN TREATY

    KEY NATIONS/ALLIES HAVE RESERVED THEIR POSITION

    NO ONE THINKING OF OFFSHORE ACTIVITIES 1920

    UK MOST ACTIVE

  • SVALBARD BOX III

    NPD WITH EXTENSIVE SEISMIC SURVEYS

    DATA AVAILABLE AND COMPANIES CAN DO SURVEYS ONLY BETWEEN 74N-7430N

    CREEPING JURISDICTION

    2 LICENSES ALLOCATED 22 CONCESSION ROUND.

    INCLUDE MAJOR US AND FRENCH COMPANIES.

    NO DATA MADE AVILABLE AND NO COMMERCIAL SURVEYS ALLOWED NORTH OF 74.30 N

  • SVALBARD BOX IV

    IF NORWAY CONTINUES THE POLICY OF NO ACTIVITY

    ON THE SHELF AREA WITHIN THE SVALBARD BOX

    NORTHE OF 74.30.N, OTHER NATIONS IN AN ENERGY

    HUNGRY WORLD MIGHT SECURE THAT THE MINING

    LAW OF SVALBARD IS APPLIED

  • THANK YOU FOR THE ATTENTION