ARCTIC OCEAN COMMONS OIL AND GAS: PROPOSED PROFIT DISBURSEMENTS:

United as the lead manager for The Responsible Consortium proposes a new multi-nation benefits sharing concept, which will share the wealth generated from the Common Arctic Ocean development more equitably after full consultation with the effected people, governments, nations, charities and research institutes, especially those supporting the Responsible Consortium’s proposals. 

Unfortunately the United Nations (UN) Iraq oil-for-food scandal has rightly or wrongly tarnished the public’s perception of the UN’s ability to fairly manage and distribute oil revenues. Thus the Responsible Consortium, which is a more transparent private group, which will operate within clearly defined responsibilities to the surrounding nations and its peoples and will be more likely to uphold the global public’s trust and ensure an equitable sharing of the resource and revenues. The Responsible Consortium will keep and make available financial records in full conformity to the latest IFRS accounting rules. The Responsible Consortium proposes the following broad revenue sharing regime:

a)     The Responsible Consortium will develop the Arctic Ocean’s resources in full coordination and consultation with the surrounding nation’s government’s and respective industrial and environmental Agencies.

 

b)     The Responsible Consortium will share a to-be-agreed share of revenues and taxes equitably and responsibly with the five countries national and coastal states governments surrounding the Arctic Ocean and Iceland. Suggested taxes are 20% after recoupment of all risk capital expenditures.

 

c)      The Responsible Consortium will create an Arctic Resources Peoples Dividend fund which will, once commercial oil and gas production commences, make annual payments directly to the estimated five million coastal Arctic community residents in the five surrounding countries as well as Iceland. (The Arctic Resources fund could be modeled along the lines of the Petroleum Fund of Norway, (http://www.norges-bank.no/nbim ) and-or the Alaska Resource fund, which typically pays out approximately $1,000 annually to every man woman and child in Alaska,  (http://www.apfc.org/ ).

 

d)     The Responsible Consortium will provide ten percent (10%) of available future Arctic oil and gas production to those developing nations without energy resources of their own, who are experiencing extreme national hardship in paying for energy at current prices by subsidizing the price of fuel to them.

 

e)     The Responsible Consortium will also pay a to-be-agreed fixed amount or a share of revenues to each of the five Coastguards’ of the surrounding countries to defray some or all of their expected ongoing costs of Arctic environmental research and Safety at Sea and generally assisting the Responsible Consortium’s oil and gas development.

 

f)        The Responsible Consortium will also make financial grants available to qualified international and national Arctic research institutes and qualified scientists to better understand the Arctic environment and how the resources can best be developed in the least intrusive manner.


 

Proposed Baseline Global Revenue Sharing Arrangements:

 

(Assumes a 5 million BBL/day oil-equivalent eventual production rate and $70 per barrel oil price).

( Estimated amounts only, in US$). Final amounts are to be determined after negotiations between the countries and affected parties.

(After recoupment of exploration and capital expenditure)

 

  1. Five Countries Tax shared on a mutually agreed basis. (Tied to EEZ Arctic Ocean border frontage %)                                                          10,000,000,000

 

  1. Coast Guards of Five Arctic Nations Expenses Reimbursements. 500,000,000

 

  1. Arctic Coastal Communities population dividend fund.             5,000,000,000

 

  1. UN General Fund. (Percentage of gross revenues).                     500,000,000

 

  1. UN Seabed Authority, Annual Contribution.                                     25,000,000

 

  1. Various contracted Environmental Agencies and Research Institutes, (PAWS, SCRIPPS, Woods Hole, etc.                                                     200,000,000

 

  1. Developing Countries Energy Hardship price subsidy              5,000,000,000

 

 

Suggested Share of 20% overall tax (Item 1):

 

Russia………………………………………………………………..   26.00%

Canada ……………………………………………………………..    24.00%

USA …………………………………………………………………    22.50%

Norway ……………………………………………………………..     12.50%

Denmark …………………………………………………………...     12.50%

Iceland ……………………………………………………………..       2.50%

 

 

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