Technical Design And Economics Of Antarctic Offshore Petroleum Development
Authors: Beike D.K. 
Published: October 2008

ABSTRACT
This article major considerations for Antarctic petroleum development. A hypothetical technical development scheme is described and an economic evaluation is performed.

INTRODUCTION
Antarctica is one of the few remaining frontier areas for petroleum exploration and extraction. Very little is known about the presumably rich petroleum resources of this continent. Speculation, based on very basic geologic and geophysical investigations, raised hopes that vast resources of petroleum could be expected. In particular, the Ross Sea has been targeted as one of the most favorable areas. This is based on the discovery of promising sedimentary basins of considerable thickness.
However, the lack of information on accurate hydrocarbon estimates, a lack of mineral rights regulation and expected very high costs due to a very hostile environment would make a hypothetical development a very risky venture. Figure 1 shows the geographical outline of the area.

LEGAL CONSIDERATIONS
The legalities of the continent of Antarctica arc governed by the Antarctic Treaty. The Antarctic Treaty was ratified in 1961. The treaty area applies to the area south of the 60°S latitude. The treaty does not cover mineral resources.
De facto, it seems that the counties involved agreed on a ban on commercial activities. Clearly, however, it should be recognized that the individual parties involved have different views on how to set up a mineral regime. These major interest groups are the treaty powers, the environmentalists and the Third World Countries.
The current interest in Antarctic minerals is not of an economical nature. Rather, it is much more a concern LO avoid falling behind and loosing future access to potentialy important resources. This is clearly realized by all the interested parties, leading to the recognition of the need for a mineral regime. If this issue remains unsolved it may present a threat to the Antarctic Treaty and the Antarctic Treaty System. Once the arrangements have been made it will become immensely difficult for a non-participating country to join a group of experienced countries, when the race for resources reaches the exploitation phase. It is generally feared by the Third World Countries that a mineral regime established by the Treaty powers will provide an advantage to the industrialized countries.
The Convention on the Regulation of Antarctic Mineral Resource Activities (CRAMRA) suggested management of mineral resource activities as 'an integral part of the Antarctic Treaty System'.1 It covers the prospecting, exploration and development stages, excluding scientific research, as covered in the Antarctic Treaty. Minerals, under this convention, are 'all non-living natural non-renewable resources, including fossil fuels, metallic and non-metallic minerals'. Mineral resource activities must be consistent with the Antarctic Treaty System, the special responsibility of Antarctic Treaty Consultative Parties for the protection of the Antarctic environment the special legal and political status of Antarctica and the legal positions protected by Art. IV of the Antartic Treaty, which deals with the claims issue.