2/28/2024 0 Comments Delimited boundaryThe world's EEZ waters, as measured from coastlines (in black) up to the EEZ legal limit (in red), cover approximately 169,000,000 square kilometers (geodetic). Political boundaries that are defined and delimited by straight lines and usually created by people. A boundary that follows the distribution of cultural characteristics. The Figure below shows, in red lines, the limit of the Exclusive Economic Zones ("EEZs") of the world, together with maritime boundaries delimited by treaty (depicted by blue lines) and interpreted "strict equidistance" lines in locations where no current delimited maritime boundary exists (shown in orange). A boundary created by a physical feature, such as a mountain, river, or strait. Indeed, maritime boundary disputes form a misunderstood and frequently overlooked area of investment risk management in the energy sector. It is only since 1954 that this undelimited sector of the boundary has suddenly become a delimited boundary. Coastal States with competing claims to maritime areas routinely offer and award oil concessions in disputed waters without the investors taking blocks being fully aware of the underlying inter-State dispute and the risks presented by an un-delimited boundary, especially one featuring straddling deposits. Disputes over maritime boundaries regularly flare up around the world and sometimes result in skirmishes. The complex process of agreeing and fixing boundaries or of making provisional arrangements can be time-consuming and expensive but once agreed can significantly contribute to the economic wealth of the affected countries. Fewer than half of the 500 or so potential maritime boundaries in the world have been agreed, creating uncertainty not only for the coastal States involved but also for their investors active in the offshore oil and gas industry.
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