THE EFFECTIVENESS OF ADR MECHANISMS IN THE RESOLUTION OF DISPUTES IN THE UPSTREAM PETROLEUM SECTOR IN NIGERIA

Abstract

The effectiveness of ADR mechanisms in the resolution of disputes in the upstream petroleum sector in Nigeria. These mechanisms include negotiation, mediation, conciliation, arbitration etc. However, alternative dispute resolution (ADR) is simply a process of initiating alternative methods and procedures in the resolution of disputes in the oil and gas industry without resorting to litigation, which is expensive, rigorous and time consuming. ADR provides a confidential and alternative way or method of tackling legal disputes without going through the litigation or court system. The term ADR is also generally used to describe the methods and procedures used in resolving disputes as an alternative to traditional dispute resolution system. The purpose or aim of the study is to show the effectiveness of ADR mechanisms in the resolution of oil and gas disputes in Nigeria and to achieve same, the following objectives will guide the study. They include the examination of the effectiveness of alternative dispute resolution mechanisms, to examine the various dispute resolution mechanisms, to examine the role of alternative dispute resolution mechanisms in the oil and gas industry. The article adopts a doctrinal research methodology, and the sources of authority and information are mainly from primary sources of data and they include. statutes, case law and customs. Furthermore, secondary and tertiary sources of data were also used in the study and they include articles in journals, textbooks, indexes and internet sources. The findings of the article show that alternative dispute resolution mechanisms are relatively effective resolution of disputes in the oil and gas industry in Nigeria, that the alternative dispute resolution mechanisms used in the oil and gas industry are negotiation, mediation, conciliation, and arbitration. The recommendations of the article are that the Petroleum Industry Act 2021 has identified alternative dispute resolution mechanisms like negotiation, mediation, conciliation and arbitration as viable methods of dispute settlement in oil and gas related disputes in the oil and gas industry in Nigeria, all oil and gas disputes should be settled through alternative dispute resolution mechanisms to enable the smooth running of the oil and gas industry and that the power to make binding decisions is of fundamental importance, and Arbitration and Mediation Act 2023 distinguishes only arbitration and mediation as methods of resolving disputes from other alternative dispute resolution procedures in arriving at a negotiated settlement.