The boundary between Cameroon and Nigeria that had extended from Lake Chad to the sea and into the deep ocean had been a source of disagreement between the two neighboring states. Although close historical links had existed between the two nations, Germany acting as the colonial power in what is now Cameroon and Britain in the present day Nigeria had agreed about the division as far back as the 1913. However, France at the end of the First World War replaced Germany as a colonial power and Britain administered a part of the Cameroons. Thus, after the independence of Nigeria Bakassi peninsula, claimed by Cameroon, ended up under Nigerian administration. This thesis presents an examination of the International Court of Justice decision in the Nigeria vs. Cameroon case and attempts to determine how this decision influenced the balance of hydrocarbon reserves and the energy situation in the region.