JOINT DECLARATION OF 27 September 1995

COOPERATION OVER OFFSHORE ACTIVITIES IN THE SOUTH WEST ATLANTIC

Comment - AGREEMENT - Side Letters

1.  The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Argentine Republic agreed that the following formula on sovereignty, based on that contained in the Joint Statement issued at Madrid on 19 October 1989, applies to this Joint Declaration and to its results:

(1)  Nothing in the content of the present Joint Declaration or of any similar subsequent Joint Statements and meetings shall be interpreted as:

(a) a change in the position of the United Kingdom with regard to sovereignty or territorial and maritime jurisdiction over the Falkland Islands, South Georgia and the South Sandwich Islands and the surrounding maritime areas.

(b) a change in the position of the Argentine Republic with regard to sovereignty or territorial and maritime jurisdiction over the Falkland Islands, South Georgia and the South Sandwich Islands and the surrounding maritime areas. 

(c) recognition of or support for the position of the United Kingdom or the Argentine Republic with regard to sovereignty or territorial and maritime jurisdiction over the Falkland Islands, South Georgia and the South Sandwich Islands and the surrounding maritime areas.

(2)  No act or activity carried out by the United Kingdom, the Argentine Republic or third parties as a consequence and in implementation of anything agreed to in the present Joint Declaration or in any similar subsequent Joint Statements and meetings shall constitute a basis for affirming, supporting, or denying the position of the United Kingdom or the Argentine Republic regarding the sovereignty or territorial and maritime jurisdiction over the Falkland Islands, South Georgia and the South Sandwich Islands and the surrounding maritime areas.  The areas subject to the controversy on sovereignty and jurisdiction will not be extended in any way as a consequence of this Joint Declaration or ite implementation.

This Joint Declaration does not apply to the maritime areas surrounding South Georgia and the South Sandwich Islands.

2.  The two Governments agreed to cooperate in order to encourage offshore activities in the South West Atlantic in accordance with the provisions contained herein.  Exploration for and exploitation of hydrocarbons by the offshore oil and gas industry will be carried out in accordance with sound commercial principles and good oil field practice, drawing on the Governments' experience both in the South West Atlantic and in the North Sea.  Cooperation will be furthered:

(a) by means of the establishment of a Joint Commission, composed of delegations from both sides;

(b) by means of coordinated activities in up to 6 tranches, each of 3,500 square kilometres, the first ones to be situated within the sedimentary structure as identified in the Annex.

3.  The Commission will be composed of a delegation from each of the two states, and will meet at least twice a year.  Recommendations shall be reached by mutual agreement.

4.  The Commission will have the following functions:

(a) to submit to both Government recommendations and proposed standards for the protection of the marine environment of the South West Atlantic, taking into account relevant international conventions and recommendations of competent international organisations.

(b) to coordinate activities in the tranches referred to in paragraph 2(b) above, as areas for special cooperation.  This will be done by the establishment of a subcommittee which shall meet regularly, subordinate to the Commission, charged with:

(i) encouraging commercial activities in each tranche by means such as joint ventures and consortia from the two sides;

(ii) seeking nominations from companies for each tranche, to be offered upon terms appropriate for a challenging environment;

(iii) making recommendations on proposals made to the two Governments by companies for development projects in each tranche, including the limits of the tranches;

(iv) seeking close coordination in regard to all aspects of future operations, including the overall level of fees, royalties, charges and taxes, the harmonisation of timing, commercial terms and conditions, and compliance with the recommended standards;

(v) recommending on the basis of geological data known to both sides, additional tranches either within the sedimentary structure referred to in the Annex or in a further area to be agreed by the Governments on the recommendation of the Commission;

(c) to promote the exploration for and exploitation of hydrocarbons in maritime areas of the South West Atlantic subject to a controversy on sovereignty and jurisdiction, and to this end:

(i) to promote cooperation between industry on both sides, including the formation of joint ventures and the elaboration of joint projects for exploration, production and use of infrastructure;

(ii) to receive from both sides and from operating companies the available information on scientific research, development of activities and commercial operations relating to the seabed, whilst respecting commercial confidentiality;

(iii) to propose to both Governments coordinated research work by commercial undertakings;

(iv) to submit to both Governments recommendations for standards for offshore activities in safety, health and monitoring;

Both Governments will take the appropriate measures in order to ensure that the companies will keep the Commission informed on the development of their activities;

(d) on the basis of geological data known to both sides, to propose to the two Governments at the appropriate time further areas of special cooperation, on terms similar to those contained in paragraph 4(b) above;

(e) to consider and submit recommendations to the two Governments on any related matter which may arise in the future, including the possible need to agree on the unitisation of any discoveries in accordance with good oil field practice, on pipeline operations and on the efficient use of infrastructure.

5.  The arrangements regarding search and rescue set out in the Joint Statements of 25 September 1991 and 12 July 1993 or any future arrangements between the Parties on the same subject will apply to offshore activities.  Civilian helicopter traffic will be the subject of future discussion.

6.  Each Government will take the appropriately related administrative measures in accordance with this Joint Declaration for the exploration for and exploitation of hydrocarbons in the areas referred to in paragraph 4 above.  They agreed that such measures regulating the activities of the companies would be subject to the formula on sovereignty in paragraph 1 above.  The Parties will create the conditions for substantial participation in the activities by companies from the two sides.  The Parties will communicate to each other relevant information relating to the conduct of exploration and exploitation activities in the areas.  Both Parties agreed to abstain from taking action or imposing conditions designed or tending to inhibit or frustrate the possibility of carrying out hydrocarbons development in the areas.

7.  In order to implement the different arrangements in this Joint Declaration, which form an interdependent whole, the two Governments agreed to cooperate throughout the different stages of offshore activities undertaken by commercial operators, including the regime for the eventual abandonment of installations.

For the United Kingdom               For the Argentine Republic

New York, 27 September 1995

(Signed by The Right Honourable Malcolm Rifkind MP for Britain
 and His.Excellency Dr. Guido Di Tella for the Argentine Republic)

ANNEX TO JOINT DECLARATION 
DATED 27 SEPTEMBER 1995

Special Area

The Area is bounded by line of the type described in Column 2 joining the points defined to the nearest minute of arc by coordinates of latitude and longitude on WGS 72 Datum specified 
in Column 1.

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