Mrunalini Srinivasan, SASTRA University
ABSTRACT
This paper focuses on the international oil and gas disputes that are present and how ADR is preferred. The reason for disputes in oil and gas industries is because it is a commercial sector that usually has many fluctuations in prices of oil and other related products. Environmental concerns, shareholders' commercial matters and contract matters are just a few of the disputes that exist in this sector. In International oil and gas companies, they do not seek to go to local courts and rather choose international arbitration for negotiation as a natural alternative to litigation in courts. They choose this method to avoid conflicts and bring neutrality to the issue at hand. Arbitration can be used as a private method of dispute resolution that is chosen by the parties so that they can put an end to the disputes that exist between them without having to go to courts. The other methods that can be used as dispute resolution are negotiation, mediation and expert determination.
This paper also throws light on how oil and gas industries in Arab countries prefer alternative dispute resolution over litigation. Disputes in oil producing Arab countries have a negative impact on the other countries and global oil market. Preferring arbitration in these situations would be beneficial for oil contractors and governments as the process of litigation is expensive and time consuming which is detrimental to this sector. The Indian Oil and gas industry operates under the regulatory framework established by the Petroleum and Natural Gas Regulatory Board Act, which was enacted in 2006. This Board’s mandate includes the Authorities to resolve disputes in a more amicable way to protect consumer’s interests and companies who are involved in this sector. A few cases on how arbitration was used for disputes that involved international oil and gas companies and governments are also discussed in this paper. Lastly, this paper also talks about the possible challenges that are faced by oil and gas industries when an alternative dispute resolution is preferred.
Keywords: Oil, Gas, Mediation, Arbitration, Alternative Dispute Resolution.
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