What are the differences of the offshore and onshore dichotomy?

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2026-10-15 05:00

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Onshore/offshore dichotomy is way of allocating the revenue accrued from exploitation and exploration of crude oil. Such revenue is divided into onshore revenue (revenue accrued from oil drilled onshore (on land) and offshore revenue (accrued from oil drilled from littoral zone).

The dichotomy implies the revenue from offshore crude belong to a sovereign nation and not to the coastal communities, and thus must be shared among the states that make up the nation, while onshore revenue belongs to the coastal communities (termed oil producing communities) on which land the crude is drilled.

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