Problems on the Management and Compensation of Oil pollution Damage Resulting from Exploration and Exploitation on the Continental Shelf under International Law

Abstract

At the present time, offshore petroleum activities have rapidly been progressive. The increased demand leads to more oil and gas exploration and exploitation on the continental shelves. This may result in the risk of pollution from oil spills which cause serious damage to the marine environment and human beings. Moreover, the oil spill damage at sea can be widespread and cause transboundary pollution to the neighboring states. Thus, the United Nations Convention on the Law of the Sea, 1982 (UNCLOS 1982) which is the constitution of the ocean regime plays a major role as an international legal framework and mutual cooperation on prevention, control and reduction of pollution from such activities. A State Party is bound by the international obligations of the UNCLOS 1982 to implement international rules and standards on prevention and protection of the marine environment. However, it is merely broad rules and standards which are not clear how the States Parties should manage such pollution.

According to the international conventions on prevention and control of marine pollution, although there are the International Convention for the Prevention of Pollution from Ships 1973/1978 Annex I and 1996 Protocol to the 1972 Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter, the measures under the mentioned conventions are not organized and consistent with the pollution management that may affect the States Parties to comply with the international obligations of both conventions.

In accordance with the compensation and remedy of oil pollution damage, there is the 1977 Convention on Civil Liability for Oil Pollution Damage Resulting from Exploration for and Exploitation of Seabed Mineral Resources. However, the convention has not come into force yet due to inadequate ratifications of the States Parties which is specified under the convention. The article suggests that it should have a specific draft convention on pollution management from the exploration and exploitation activities on the continental shelves separated from other conventions, including the speedy and appropriate mechanism and measures on the compensation and remedy of oil pollution damage to the victims of oil and gas exploration and exploitation activities.

According to Thai domestic laws, although Thailand has adequate measures related to the pollution management from the exploration and exploitation activities on the continental shelves, the provisions of law are separated, unorganized and some laws should be amended, for example, the state jurisdiction on law enforcement which is not consistent with the rules of international law. Moreover, the measures on compensation and remedy of oil pollution damage have only the civil liability which is not consistent with the nature of pollution damage. There is no oil pollution fund for civil liability of oil pollution damage from such exploration and exploitation activities. Thus, the article suggests that the specific law on civil liability and oil pollution fund should be established similar to the Offshore Pollution Liability Agreement (OPOL). In other words, the operator, entering into the concession, must agree to sign the liability agreement and pay the amount of money specified by the agreement to the oil pollution fund for pollution management from the exploration and exploitation activities on the continental shelves.