Sea Tribunal Ruling: Bangladesh’s Gain, Burma’s Paying

Burma’s Radio Myanmar said briefly last week that the Burmese government accepted the UN tribunal’s ruling but the authorities have otherwise remained silent—unlike Bangladesh, which has trumpeted what it sees as a triumph.

The tribunal ruling is binding and there is no opportunity for appeal.

“We see this [ruling] as cause for great satisfaction,” said German Foreign Minister of State Cornelia Pieper, whose country hosted the tribunal. “Disputes over maritime boundaries can cause perennial strain in relations between neighboring countries. The compromise found yesterday gives both countries legal certainty.”

The final settlement of the long-running maritime dispute comes as reports are emerging of a major relaxation of laws controlling foreign investment in Burma which, if correct, would make it much more attractive than at present for potential offshore oil and gas explorers.

New foreign investment regulations tipped to go before Parliament before the end of this month would permit 100 percent foreign ownership of a project, a five year tax-free period, and a promise of no nationalization, the New York Times and Reuters reported.

“The draft law goes some way to reassuring investors worried about a reversal of the reforms and the possible seizure of assets,” says the Oslo-based energy magazine Upstream. “Western companies shied away from the largest Burmese [oil and gas licensing] exploration round in years last November.”

What many observers are waiting to see, however, is whether Burma’s government will introduce rules ensuring that a large proportion, if not all, of new oil and gas discoveries remain inside the country rather than being sold abroad as at present.