Part II
UNCLOS and Economic Rights Coastal States
The United Nations Convention on the Law of the Sea (UNCLOS) grants special rights to the coastal states with regards to exploration and use of marine resources, including energy production in the area in its jurisdiction at times termed as exclusive economic zone.
Economic Control of Waters
Article 76(4) to (6) of the UNCLOS prescribes a complicated formula for claiming such an extension. The claimant state has to present legal and scientific core material for its claim before a 21 strong member commission of experts. The evidence is invariably supported by maps to establish that the claimed continental shelf is an extension of its territory and conforms to the description contained in the Law of Sea Treaty of 1982. According to the provisions contained in UNCLOS coastal countries are allowed economic control of the waters and seabed up to 200 nm from their shores. Further international treaty allows countries to claim an extended continental shelf stretching up to 350 nm from the baselines of its territorial sea if the applicant state can establish that the claimed area was a natural extension of their contiguous land territory.
Pakistan’s Continental Shelf
Pakistan Hydrographic
Pakistan approached UNCLCS in the year 2009. Prior to approaching the UNCLOS elaborate research was undertaken by the relevant authorities .Subsequently a sub-commission of the UNCLOS on ” Limits of Continental Shelf ” reviewed and evaluated Pakistan’s case and accepted its claim for extension of its continental shelf limits . As a result Pakistan’s sea limits was extended from 200 nautical miles to 350 nautical miles . This acceptance, in the year 2015 , was despite certain of the claimed territory partially overlying an Omani claim .It is believed in maritime circles that this acquiescence was amicably agreed pursuant to negotiations.
Expansion of Offshore Territory and Economic Gains
Following the acceptance of the claim, Pakistan’s offshore territory of 240,000 sqkm expanded by another 50,000 sqkm as a result it has been granted inherent economic rights to exploit the natural resources contained in the expanded maritime territory. In the past Pakistan has been slow to explore the hydrocarbon and mineral potential in its continental shelf and it is expected that the pace of exploration , despite being capital intensive , would accelerate in order to meet its increasing energy needs and essential mineral requirements. Pakistan’s Exploration and Production sector annually produces 3,200 mmcfd of natural gas along with 70,000 bbls of indigenous oil and this output meets around 35 % of the country’s primary energy supply.
Pakistan’s Energy Security in Peril
As of April this year the energy sector of Pakistan has been confronted by a severe cash flow crisis as the outstanding receivables from Exploration and Production (E&P) companies owed by state-owned gas utilities have escalated to almost PKR 1,500 billion including $ 600 million payable to foreign companies. In the last decade no new international upstream company has invested in any block or opportunity on offer whereas some international E&P companies have wound up their operations . The E&P sector is drastically slashing exploration and development activities as in the past one year out of the planned 23 exploration wells only nine were spud. More alarming is that only 19 out of the available 42 rigs are operational accompanied by a substantial reduction in seismic activities. It is distressing to note that development wells are being put on hold as companies are reluctant to invest and bring additional gas volumes to market which is leading to costly energy imports including LNG. Any amendment to the Exploration and Production (E&P) Policy 2012 should factor in offshore production as well .
By Nadir Mumtaz
Credit /Sources ; https://hydrography.paknavy.gov.pk/achievements/
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