Legal Limitations and Consequences of Unilateral Exploitation of Shared Hydrocarbon Fields by Adjacent States and Mechanisms for Their Resolution (With Emphasis on the Arash Gas Field)

Abstract

The unilateral exploitation of shared oil and gas fields constitutes one of the most challenging issues in international law, particularly in regions containing transboundary hydrocarbon reserves such as the Arash Gas Field (shared between Iran and Qatar). Such actions may give rise to political, economic, and legal tensions among the states concerned. From the perspective of international law, the development and exploitation of shared fields should be conducted in accordance with the principles of cooperation, good neighborliness, and equity. However, in the absence of specific agreements or binding legal mechanisms, some states may resort to unilateral extraction. Customary and treaty-based international law, including the principle of permanent sovereignty over natural resources (United Nations General Assembly Resolution 1803) and the 1958 Geneva Convention on the Continental Shelf, emphasize the necessity of cooperation among states in the utilization of shared resources. Furthermore, international judicial practice, such as the judgment of the International Court of Justice in the North Sea Continental Shelf Cases, has affirmed the principles of equity and the obligation not to cause harm to the interests of other states. Nevertheless, the absence of a comprehensive and binding legal regime governing the management of shared hydrocarbon fields creates opportunities for unilateral exploitation. The Arash Gas Field (known in Qatar as the “North Dome” field) represents a prominent example of the legal and technical challenges associated with unilateral extraction. Reports indicate that Qatar has commenced exploitation of this field without reaching an agreement with Iran. Such actions may result in reservoir pressure depletion and a reduction in Iran’s share of the common resource. From the standpoint of international law, this conduct may be regarded as a violation of the principle of reservoir unity and the obligation to cooperate in good faith. Moreover, the utilization of dispute-settlement mechanisms, including negotiation, mediation, and referral to international tribunals, may contribute to the reduction of tensions. Ultimately, the development of a comprehensive legal framework under the supervision of international organizations such as the United Nations could help prevent future disputes. The unilateral exploitation of shared oil and gas fields, particularly in the Arash Field, not only undermines fundamental principles of international law but also threatens regional stability.