On 27 August 2025, the governments of Germany and the Netherlands signed a new treaty governing the joint exploitation of cross-border hydrocarbon fields in the North Sea. This treaty marks an important step in strengthening bilateral cooperation on energy security and the sustainable use of natural resources.
The German Federal Ministry for Economic Affairs and Energy has since published the draft law for the treaty’s implementation, which requires parliamentary approval in order to be transposed into national law.
Key Elements of the Treaty
- Scope: joint exploitation of the N05-A field and other cross-border reservoirs.
- Governance and oversight: cooperation between the German and Dutch mining authorities (Lower Saxony Mining Authority and the Ministry for Climate and Green Growth, respectively).
- Technical and fiscal arrangements: including methodologies for reserve allocation, production levies, and coordination in licensing procedures.
- Health, Safety & Environment (HSE): mutual consultation and joint inspections to ensure consistent safety and environmental standards.
- Operations: obligation for operators to conclude a joint licence agreement, with clear rules on allocation, exploitation, and decommissioning.
The treaty aims to achieve optimal development of cross-border gas resources without undermining national authority over licensing and environmental permitting.
Relevance for the Energy Sector
For market participants, this treaty opens up new opportunities for joint exploration and production projects in the North Sea. At the same time, it raises complex regulatory issues, particularly in relation to:
- licensing and permitting across multiple jurisdictions;
- fiscal treatment and revenue sharing;
- HSE compliance and enforcement of uniform standards;
- structuring of joint ventures and operational agreements.
How We Can Help
Our firm has extensive experience in M&A transactions in the energy sector, combined with in-depth knowledge of the regulatory frameworks in both the Netherlands and Germany. We support clients with:
- structuring joint ventures and acquisitions in the energy industry;
- negotiating and drafting cross-border licence and cooperation agreements;
- navigating national and EU regulation on mining, energy, and the environment;
- dispute resolution and governance matters in cross-border contexts.
Cross-Border Capabilities
With integrated teams in both the Netherlands and Germany, we are ideally positioned to advise clients on projects falling under this treaty. Our cross-border approach combines knowledge of local law with international transaction structuring, enabling us to help clients capture strategic opportunities while managing legal risks in this dynamic energy domain.
