Cross-Border Unitization and Joint Development

The history of petroleum exploration goes a long way back in time. Operations of searching for oil and gas, drilling, and production first started on land but gradually expanded beyond the shore. Thanks to new technologies, drilling can now take place in deep and ultra deep waters and amid harsh physical conditions. But while the regime of offshore petroleum exploitation is well developed, many challenges remain, causing risks for investors and creating tension between States. Such is the case of petroleum reservoirs straddling international boundaries or being located in areas of uncertain jurisdiction. Should operations take place at all costs, or should the States’ economic development be stifled? The chapter revisits the debate between unilateralism and cooperation by discussing the applicable international rules and practices.