Does Canada envisage exploration and extraction activities beyond the 200 nautical mile limit? If so, what will be the benefits?
Exploration licences have been granted for petroleum resources on the Canadian continental shelf beyond 200 nautical miles on the Grand Banks of Newfoundland and Labrador. However, it is not known whether there will be any production beyond 200 nautical miles any time soon. Economic benefits are difficult to predict at this point. However, Article 82 of UNCLOS provides a form of revenue sharing for the benefit of developing states with respect to production beyond 200 nautical miles, after the first five years of exploitation. The International Seabed Authority will distribute payments and contributions “on the basis of equitable sharing criteria, taking into account the interests and needs of developing states, particularly the least developed and the land-locked among them.
