With NUPRC’s Inauguration of Body of Neutrals,Transformative Chapter in Dispute Resolution Begins

By Gbenga Komolafe

It is with profound pleasure and a deep sense of honor that I stand before you today to inaugurate the Body of Neutrals of the Upstream Alternative Dispute Resolution Centre. This momentous occasion marks a significant milestone in our role as the Regulator of the Nigerian Upstream Petroleum Sector, in our quest to provide quality, efficient, and cost-effective dispute resolution services within the upstream oil and gas industry. The establishment of the Body of Neutrals is not only the culmination of extensive planning and dedication but also the commencement of a transformative chapter in the realm of dispute resolution.

In an increasingly complex and interconnected world, the demand for effective and efficient dispute resolution has never been more critical. While traditional litigation remains necessary and important, it is often accompanied by inherent delays, high costs, and adversarial postures that can exacerbate conflicts and strain relationships, as seen in numerous protracted legal battles between Producers and host communities. These challenges underscore the inefficiencies of traditional litigation and the immense financial burdens and prolonged suffering it imposes on the individuals and communities involved.

In recognition of these challenges, our Alternative Dispute Resolution Centre was conceived with a vision to provide a seamless approach to dispute resolution—one that emphasis on mechanisms such as mediation and conciliation and other ADR methods.

Vision and Mission of Our Centre

Esteemed Guests, our mission is unequivocally clear: to provide and facilitate guaranteed access to quality, cost-effective, and time-efficient resolution of disputes that arise in the upstream sector of the oil and gas industry. Our goal is to establish a Centre grounded in fairness, efficiency, and integrity, offering a platform where disputes can be resolved outside the often-cumbersome traditional processes. Our methods enable parties to reach amicable solutions through mediation, conciliation, and other alternative dispute resolution (ADR) methods.

Our Centre is not merely an institution; it stands as a beacon of hope for those seeking justice in a timely and cost-effective manner. It is also a testament to our unwavering commitment to promoting and institutionalizing efficiency in the oil and gas industry by providing a conducive environment founded on the principles of equity and justice for all stakeholders, regardless of their background or the nature of their operations.

The Role of the Body of Neutrals

Distinguished Ladies and Gentlemen, the success of our Centre is intrinsically tied to the Body of Neutrals, which we inaugurate today. This esteemed group of professionals embodies the core values of impartiality, expertise, professionalism, and dedication. After meticulous review and thorough consultation, I am pleased to announce that the Body of Neutrals comprises eminent professionals with expert knowledge and/or technical experience in the oil and gas industry. Members include lawyers, retired judges, oil and gas industry experts, and other subject matter experts.

• The role of these Neutrals is multifaceted. They are entrusted with the oversight of disputes and the mediation of matters that fall within the Centre’s jurisdiction.

Enhancing Access to Justice in a Timely Manner

Dear All, one of the fundamental objectives of our Centre is to enhance access to justice in a timely and cost-effective manner. Too often, individuals and corporate entities in the oil and gas industry find themselves entangled in protracted legal battles that deplete resources, waste valuable time, and adversely affect the nation’s oil and gas production output. By offering alternative avenues for dispute resolution, we are opening doors to swift, equitable, and less adversarial processes in our industry. This approach not only benefits the parties involved but also alleviates the burden on our overextended judicial system.

Our approach is inclusive and adaptive, designed to meet the unique needs of the oil and gas industry. Whether through mediation sessions that foster direct communication or expert determination proceedings that provide binding resolutions, our Centre is equipped to handle disputes of varying complexities and scales. We are committed to ensuring that every individual, entity, or community that seeks our services is treated with dignity and respect, and that their path to resolution is as smooth and supportive as possible.

Fostering a Culture of Resolution and Cooperation

Distinguished Guests, beyond resolving individual disputes, our Centre aspires to foster a broader culture of resolution and cooperation, particularly in relation to host communities. The Commission regularly receives a multitude of court cases and petitions concerning host community matters. The relationship between host communities and settlors, or among host communities themselves, should be guided by equity, inclusiveness, and respect for the various laws governing the oil and gas industry. It is worth recalling that Sections 234 and 235 of the Petroleum Industry Act (PIA) 2021 provide robust provisions for the implementation of host community development under the law.

Ladies and Gentlemen, while conflict is an inevitable aspect of human interaction, it need not be destructive. Through this Centre, we aim to cultivate a culture of continuous cooperation and collaboration between the various communities and the entities involved in exploration and production. This will attract more investments and bolster investor confidence, thereby fostering growth and opportunities in the industry for shared prosperity in our nation.

Collaboration and Partnership

Distinguished Ladies and Gentlemen, collaboration and partnership are vital to the success of our Centre. We are fortunate to have the support of numerous stakeholders who share our vision and have contributed to bringing this initiative to life. To our partners in the legal, business, and academic communities, your expertise, resources, and unwavering commitment have been invaluable. This collective effort underscores the importance of working together to achieve common goals and highlights the power of unity in driving meaningful change.

Our partnerships extend beyond the local community. We are building networks with international ADR organizations to exchange knowledge, best practices, and innovative approaches. By learning from one another and sharing our experiences, we can continuously enhance the quality and effectiveness of our services, ensuring that we remain at the forefront of dispute resolution practices.

The Importance of Training and Professional Development

Dear Guests, Benjamin Franklin once remarked, “An investment in knowledge pays the best interest.” Indeed, to maintain the highest standards of practice, continuous training and professional development are essential. To this end, our Body of Neutrals will undergo regular training to stay abreast of the latest developments in ADR methodologies and to refine their skills. Our commitment to excellence ensures that we provide the best possible service to those who entrust us with their disputes.

Furthermore, we are dedicated to nurturing the next generation of ADR professionals. Through internships, mentorship programs, and collaborative research initiatives, we will cultivate a cadre of skilled practitioners who will carry forward the principles and practices that define our Centre. By investing in education and professional growth, we are securing the future of ADR and its role in resolving disputes, particularly in the energy and oil and gas industries.

Looking to the Future

Distinguished Ladies and Gentlemen, as we inaugurate this dynamic team, I encourage us all to look to the future with optimism and determination. Though the landscape of dispute resolution is continually evolving, with changes in technology, societal norms, and other emerging challenges, our Centre is poised to adapt and innovate, leveraging new tools and approaches to meet the needs of our time.

Embracing the exciting possibilities that technology offers, such as online dispute resolution platforms, virtual mediation sessions, and digital case management systems, can increase accessibility and convenience for all parties involved. We are committed to exploring these avenues and integrating them into our services for enhanced efficiency and reach.

Distinguished Guests, as we embark on this new journey, I would like to express my deepest gratitude to everyone who has contributed to the realization of this vision. To our partners and stakeholders, your unwavering commitment and collaboration have been instrumental in bringing this initiative to fruition. To the members of our Body of Neutrals, thank you for your willingness to serve and your dedication to upholding the highest standards of professionalism and integrity.

I am confident that this Body of Neutrals will play a pivotal role in transforming the landscape of dispute resolution in the sector. Together, we will build a future where disputes are resolved not through contention, but through cooperation and understanding. Let us move forward, knowing that our efforts will make a profound and positive impact on our country and beyond.

Thank you

• Being the text of the inaugural address by Eng. GbengaKomolafe, Chief Executive Officer, NUPRC, at the inauguration of Body of Neutrals for the Upstream Alternative Dispute Resolution Centre in Lagos, Monday