In the Baltic region, right near the border with Germany, Poland has discovered an oil deposit which, according to reports, lies partly in German waters. Will the revenue from extraction be shared between the two countries?
A breakthrough discovery in the Baltic
Poland has announced that near the port of Świnoujście, the largest oil and gas deposit in the country’s history has been discovered. The Wolin East field may contain as much as 22 million tonnes of oil and 5 billion m³ of natural gas. This could meet 5% of Poland’s annual oil demand and significantly reduce its dependence on raw material imports.
Territory and political impact
The oil deposit Poland has discovered in the Baltic is impressive in size, even larger than Germany’s Mittelplate, which has been exploited in the North Sea for decades.
According to ”Die Welt”, part of the new deposit lies in German territorial waters or very close to the border. This raises questions about the future division of revenue and extraction rights.
The discovery lies in an area close to the Polish-German border, and some sources suggest that part of the deposit may extend into German territorial waters. For now, most of the deposits are on the Polish side, but Germany is expressing concerns about environmental impact, tourism and participation in potential profits. The mayor of the German resort of Heringsdorf openly opposes industrial oil extraction right at the border, stressing the protection of natural regions and the cleanliness of the Baltic.
Revenue – will Poland have to share it?
- Currently there are no official decisions or regulations requiring Poland to share future revenue with Germany if extraction takes place solely in Polish waters.
- However, if the deposit indeed extends into German territory, international negotiations based on the law of the sea may arise.
- Examples from other countries show that joint extraction of cross-border deposits requires bilateral agreements, but at this stage Berlin has not made a formal claim.
- The final decision may depend on the interpretation of EU regulations and future intergovernmental negotiations, should Germany register claims.
Gains and challenges: opportunity or problem?
The new energy source could turn Poland from an importer into an important player on the market, but the investment comes with challenges:
- Possible protests from local communities and environmentalists.
- The need to create a percentage-based revenue-sharing system (in case of cooperation).
- Possible political negotiations, similar to those over co-participation in gas pipelines or LNG terminals.
- Potentially volatile oil prices and environmental protection costs.
Positions and political disputes
- The German government of the state of Mecklenburg-Vorpommern claims it has no current information or knowledge about extraction on the Polish side.
- German politicians and part of the local community openly criticise the Polish plans, pointing to threats to the environment, tourism and a contradiction with climate policy. ”The future of the region is solar energy and biomass, not oil” – German administration representatives stress.
Examples of solutions from other countries
- On the Dutch-German border, where cross-border gas and oil deposits exist. Extraction there takes place under a specific agreement (a unitisation agreement signed between the governments in The Hague and Berlin), which sets the percentage division of profits.
- A similar bilateral agreement has existed between Germany and the Netherlands since 1971, regulating the use of cross-border deposits.
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