Calming a sea of many troubles: as political differences are sorted out the rich potential of the Red Sea comes under renewed scrutiny. (Hydrocarbons).

The Middle East | February 1, 2003| | Copyright

Nothing discourages oil industry investment more than the uncertain sovereignty of a potentially oil rich area. Discoveries and production sharing contracts (PSCs) can be worthless if administrative control of an onshore or maritime area cannot be proven. As a result, hydrocarbon potential can be one of the biggest incentives for boundary resolution, whilst at the same time encouraging governments to fight for every square kilometre (sq km) of territory.

Oil and gas exploration in much of the Red Sea has been hampered by political instability for many years. The ...

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