The exploration and exploitation of the continental shelf : the contractual relationship between the coastal state and private entities

Abstract

This work was inspired by the constant debate on media that the struggle to hit ‘blackgold’ in our little island of Malta seems to be an effort taken into account solely to embellish a political manifesto. The aim of this thesis is twofold. Firstly, the study aims at identifying the main legal instruments which are used to regulate the relationship between parties common to the petroleum industry. Secondly, it explores the possibility of a more efficient manner in which promotion of the Maltese Continental Shelf can take place through the introduction of updated principles and concepts to the legal framework. The study first asks two fundamental questions: Where does the exclusive right of the State to explore and exploit continental shelf resources originate from? What is the nature of this right? Consequently, a brief historical outlook is provided to shed light on the evolution of legal development and customary international law. Subsequently, the thesis provides the reader with interesting insight and explanatory commentary on the main concepts and terms that are generally found in most contracts between a sovereign Coastal State and a private entity. Where a concept analysis proves to be potentially beneficial for local application, the author deemed it opportune to include suggestions for improvement. For inspiration, the study examines foreign policies and processes, ranging from European Common and Civil law jurisdictions to those of the Far East. The fulcrum of the work is to identify the different forms of contracts and their actual application. The relationship created by each is observed, and detail is provided as to the duties and obligations they create. It is concluded that Malta lacks appropriate infrastructure and necessary framework considered as indispensable and vital by international standards.