Iceland – Norway
JDA11@ICNO
Europe
A. Agreement between Norway and Iceland on the Continental Shelf between Iceland and Jan Mayen
[JDA11@ICNO#1 Agreement on CS between Iceland and Jan Mayen 1981]
Map Source: https://www.regjeringen.no/contentassets/19da7cee551741b28edae71cc9aae287/en-gb/hfig/fig6-5.jpg?preset=fullsize
Implementation Date: Signed 22 October 1981, entered into force 2 June 1982
Maritime border Defined
Simple Revenue Sharing / Unitization
Summary:
The 1981 delimitation Agreement between Iceland and Norway established a ‘cooperation area’ Joint Development Area based on the recommendations of the Conciliation Commission.
The joint development area extends approximately 12,720 square kilometres on the Icelandic side of the maritime boundary, and 32,750 square kilometres on the Norwegian side and provides that a 25 per cent share in petroleum activities from the JDA inside the boundary of one state shall go to the other state. The Agreement provides for the unitisation of deposits which straddle the JDZ and either country’s OCS outside the JDA.
This form of agreement provides a clear jurisdiction as it defines which state laws will apply within two parts of the JDZ region. The agreement is also significant as an example of a bilateral JDA in the Arctic Ocean region. No drilling has occurred inside the JDA as yet.
Split:
In the part of the area defined in Article 2 north of the delimitation line between the two Parties' economic zones (approximately 32 750 sq. km.), Iceland shall be entitled to participate with a share of 25 per cent in such petroleum activities as are referred to in Article 4. In negotiations with outside governmental or non-governmental petroleum companies, Norway shall seek to arrive at an arrangement whereby both the Norwegian and the Icelandic percentage of the costs of such petroleum activities are carried by the company (or companies) concerned up to the stage where commercial finds have been declared.
If it is not possible to obtain an arrangement whereby the two Parties' costs are carried by the company (or companies) concerned, the Parties shall initiate negotiations on the possibility of conducting the operations as a joint venture where each of them carries its own costs, or where they share the costs. If Iceland does not wish to participate on this basis, Norway may proceed on its own. If commercial finds are declared, Iceland shall be entitled, at this stage, to enter into participation with its share in return for reimbursing Norway for that share of the costs incurred up to this juncture which would correspond to Iceland's share if Iceland had participated from the outset.
In the part of the area defined in Article 2 south of the delimitation line between the two Parties' economic zones (approximately 12 720 sq. km.), Norway shall be entitled to participate with a share of 25 per cent in such petroleum activities as are referred to in Article 4. In negotiations with outside governmental or non-governmental petroleum companies, Iceland shall not be bound to seek to arrive at an arrangement whereby the Norwegian percentage of the costs of such petroleum activities are carried by the company (or companies) concerned.
<From JDA11@ICNO#1 [5] [6]>
Governance:
Parties should jointly appoint a Conciliation Commission to submit recommendations with regard to the dividing line for the shelf area between Iceland and Jan Mayen and having jointly appointed such a Commission
<From JDA11@ICNO#1 [Preamble]>
Other References: