Statoil in test case for industry as Canada extends seabed territories

Sun Nov 16, 2014 1:00am EST
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* Coastal states using old laws to grab seabed territories

* Areas used to be too remote to develop

* But new oil and gas drilling technology promises revenues

* Percentage of revenues must go to U.N. seabed authority

* Countries hope to pass that payment on to oil firms

* Statoil is test case via exploration in Canada fields

By Alister Doyle

OSLO, Nov 16 (Reuters) - Norway's Statoil risks millions of dollars in extra costs in Canada - a test case that could spell problems for other oil firms too as coastal states extend their seabed territories far into resource-rich ocean depths.

Coastal nations are using U.N laws to extend and define new limits to their seabed territories, pushing beyond a previously established 200-nautical mile (370 kms) zone for drilling and mining as technology opens new frontiers in finding deepwater oil and gas.   Continued...