"We would like to see the agreement contain specific provisions for the oil companies who are doing the drilling to be held fully responsible in the case of an accident so that means full liability for operators. There is simply no response capacity in any of the Arctic states to deal with what could be the worst environmental disaster in history," said Christy Ferguson, the Arctic project leader for Greenpeace Canada.

Environmentalists fear a catastrophe similar to Deep Water Horizon in the Arctic would cause far more damage, be harder to plug and - if the onset of winter ice prevented quick successful capping - could spew unabated under the Arctic pack until the following summer.

The proposed pact imposes no actual requirements in terms of drilling safeguards, equipment, or capacities to deal with blowouts or oil spills.

The 'agreement' may be adopted at the Council's meeting in Sweden during May. Canada assumes the chair of the Council this year.