Insight

The UNCLOS royalty: a debate in the deep blue sea

Loading current market price

Get this report

Loading current market price

Get this report as part of a subscription

Enquire about Subscriptions

Already have subscription? Sign In

Further information

Pay by Invoice or Credit Card FAQs

Contact us

Contact us about this report

Report summary

Statements made in the run up to the Norwegian general election highlighted a little known but potentially significant payment called the UNCLOS royalty. UNCLOS stands for the 1982 United Nations Convention of the Law of the Sea which is best known for its use in maritime boundary disputes. However Article 82 of the treaty dictates that coastal states must make royalty payments to the international community when it exploits non living resources that lie beyond a country s exclusive economic zone (EEZ). Oil and gas exploration in countries such as Norway Canada Australia and Russia is now encroaching on this zone. Therefore the 35 year old Article that has so far been only part of philosophical debate will be put to the test. The royalty rates and timing are clear. However the government may look to pass this liability on to the investor. Who should bear the final burden? We investigate the various options and impact on value.

What's included

This report contains

  • Document

    TheUNCLOSRoyalty_download.xlsx

    XLSX 51.64 KB

  • Document

    The UNCLOS royalty: a debate in the deep blue sea

    PDF 395.75 KB

  • Document

    The UNCLOS royalty: a debate in the deep blue sea

    ZIP 412.68 KB

Table of contents

Tables and charts

This report includes 5 images and tables including:

Images

  • The UNCLOS royalty
  • Active exploration in UNCLOS waters
  • Possible applications of the UNCLOS royalty
  • Norway: 400 mmbbl oil field
  • Norway: 5 tcf wet gas field

Questions about this report?

  • Europe:
    +44 131 243 4699
  • Americas:
    +1 713 470 1900
  • Asia Pacific:
    +61 2 8224 8898