NUPRC, Oil Firms, Arbitrators Brainstorm on Promoting Out-of-court Dispute Resolution

*Says ADR approach leading to development of idle oil assets

Peter Uzoho

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday met with key stakeholders to review and agree on the updated Draft Rules of Procedure for the Alternative Dispute Resolution Centre (ADRC), a special out-of-court unit of the agency.
The commission revealed that the adoption of the ADR approach in settling disputes in the Nigerian oil and gas sector had started yielding positive results such as the development of hitherto idle oil assets as well as boosting investor confidence in the industry.

At the stakeholders’ engagement and consultation session held at the NUPRC’s Lagos regional office, yesterday, the Commission Chief Executive, Mr. Gbenga Komolafe, said the session was part of the ongoing efforts by the agency to enhance efficiency, fairness, and effectiveness of alternative dispute resolution within the upstream industry.

In his address read virtually on his behalf by the Executive Commissioner, Development and Production, NUPRC, Mr. Eronense Amadasu, the chief executive  said the shared goal of the stakeholders was to ensure that the ADR Centre operates with the highest standards of transparency, integrity, and responsiveness in consonance with the needs of the industry.
According to Komolafe, the ADRC was established in 2021, thereby showcasing the commission’s commitment to providing a robust framework for resolving disputes in a timely manner.

“We recognise that ADR mechanisms can play a crucial role in alleviating the burden on our courts, reducing litigation costs, and fostering a more amicable and collaborative approach to dispute resolution.
“As critical stakeholders, you undoubtedly recognise the profound impact of the oil and gas industry on the stability of our economy and the nation at large. Thus, it is imperative that a harmonious business environment is fostered to ensure continued growth of the sector”, he said.

He emphasised that the timely and equitable resolution of disputes within this critical sector was not just essential but paramount.
He added that the ADRC was committed to delivering an innovative, efficient, and cost-effective approach to dispute resolution, designed to reinforce industry stability and catalyse sustainable growth.
He pointed out that the presence of the stakeholders at the session underscored the importance of collaboration and cooperation in the process of guaranteeing a peaceful industry.

Describing their insights, experiences, and perspectives as invaluable to the Commission, Komolafe noted that the development of the ADRC Draft Rules of Procedure was not merely an administrative task but a collective endeavour that requires the active participation of all relevant stakeholders.

He explained that: “The draft rules we present today are the result of extensive research, and have been benchmarked against international best practices, while taking into careful consideration the industry within which we operate. We are however not ignorant of the value your insights will provide to ensure the practical effectiveness of these rules.”

Komolafe added: “We therefore invite you to engage openly and constructively during this consultation. Your feedback on the procedural fairness, accessibility, and comprehensiveness of the draft rules will be crucial in refining them to better serve the needs of all stakeholders and the industry at large.”

He said the commission was fully committed to ensuring that the ADRC becomes a beacon of excellence in dispute resolution.

Meanwhile, the Commission’s Secretary/Legal Adviser, Olayemi Anyanechi, has disclosed that the adoption of the ADR approach in the Nigerian oil and gas sector has started yielding positive results such as the development of a lot of the idle oil assets as well as boosting investor confidence in the industry.

Speaking to journalists on the sidelines of the stakeholders engagement session, Anyanechi mentioned that the alternative dispute resolution centre was a shorter route to settling disputes in the oil and gas industry.

She said this year alone, the commission had received about 70 court cases and had spent huge amount of money in defending matters.

According to her, adopting the alternative dispute resolution channel was important as it would enable NUPRC to  oversea and regulate the oil and gas industry in a more convivial environment.

On the commission’s plan to establish more ADR centres across the country, the legal Adviser said NUPRC was focusing more on the oil communities, which is where the bulk of the disputes that need to be resolved emanate from.