The Arctic, characterised by its extreme weather conditions and expansive ice cover, holds immense ecological significance and socio-economic potential. However, accelerating ice melt, a consequence of climate change, is unlocking new prospects for commercial activities by opening up previously inaccessible areas. Many of these activities, most notably offshore petroleum development in the Arctic Ocean continental shelf, pose considerable pollution risks to the environment, property and livelihoods. During the last fifteen years, incidents such as the Montara and Deepwater Horizon oil well blowouts have globally raised serious concerns about the safety of offshore petroleum development and the accountability of operators. Even so, there remains a significant regulatory gap in international law, with no comprehensive agreement addressing the liabilities of offshore petroleum operators and existing conventions such as the 1992 Civil Liability Convention and Fund not covering such activities. This is despite an obligation in the 1982 UN Convention of the Law of the Sea for state parties to further develop international law relating to liability and compensation for damage caused by marine pollution.
In the Arctic region, the need for a robust regulatory framework to govern offshore petroleum development in the Arctic Ocean continental shelf is particularly pressing. With no international framework in place, states littoral to the Arctic Ocean must rely on their divergent domestic civil liability legislation, leading to challenges in ensuring prompt and adequate compensation, particularly in cases of transboundary pollution damage. This complexity highlights the necessity of a cohesive and unified approach, prompting exploration into the establishment of a regional treaty on civil liability for offshore petroleum development activities in the Arctic region. While the implementation of such a treaty would need to overcome several hurdles, including negotiation and ratification, it can offer extensive benefits, such as tailored, context-specific regulations and enhanced cooperation among Arctic states.
Accordingly, this thesis argues that a regional treaty focussing on the liabilities of offshore petroleum operators is essential in the Arctic. In doing so, it sets out a theoretical framework grounded in tortious liability and identifies key features necessary for effective civil liability regulation, such as mechanisms for channelling and limitation of liability. These features serve as a lens through which the effectiveness of relevant domestic and international law is examined, enabling a determination of the complexities and shortcomings in existing frameworks, including conflict of laws issues. This analysis provides a compelling rationale to develop further rules regarding the liabilities of offshore petroleum operators. To address the identified areas of inconsistency, the thesis proposes a regional treaty as a viable solution and recommends complementary practical measures grounded in regional cooperation that can inform relevant policy decisions. Such an approach would provide a more effective and comprehensive civil liability regime for ensuring timely resolution, efficient clean-up, and fair compensation in the aftermath of offshore petroleum-related incidents in the Arctic region. This would not only address the immediate challenges posed by offshore petroleum development but also the broader environmental and socio-economic implications. By advocating for enhanced collaboration and alignment among Arctic states, the research endeavours to mitigate risks, promote responsible resource development, and safeguard the fragile Arctic ecosystem.
However, acknowledging the complex and time-intensive process of creating a regional treaty on civil liability for offshore petroleum pollution, and considering the significant transboundary implications of oil spills, this thesis also proposes a pragmatic interim solution. It recommends establishing a multilateral private international law agreement between the Arctic states to address cross-border cases of offshore petroleum pollution damage from offshore petroleum development in the Arctic continental shelf.
The findings and recommendations presented in this study also hold significant potential for broader application at an international level, offering a framework to enhance civil liability regimes in regions with offshore drilling activities and contributing to global efforts towards sustainable development and environmental protection. Through replication of the proposed strategies and principles outlined herein, stakeholders can work towards establishing a more resilient and equitable regulatory framework for offshore petroleum operations, not only in the Arctic but also in other regions facing similar challenges.