This article will be looking at the provisions of the regulations put in place by the Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA) for the alternative dispute resolution (ADR) regarding disputes between participants and stakeholders within the Midstream & Downstream Petroleum Industry.
What are the objectives of the ADR regulations?
– To establish a Midstream & Downstream Petroleum Alternative Dispute Resolution (ADR) Centre (hereinafter referred to as “The Centre”).
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– To provide procedures for timely and cost efficient dispute resolution in Nigerian Midstream Downstream Petroleum operations.
What is the application scope of te ADR regulations?
-These regulations shall apply to activities connected with dispute resolution in Midstream & Downstream Petroleum operations.
What is the provision of these regulations regarding the NMDPRA ADR Centre?
– The regulations provide that there is established the Midstream & Downstream Petroleum ADR Centre to apply ADR mechanisms to resolve disputes in the Midstream & Downstream Petroleum industry in a cost efficient and less time-consuming manner.
What are the powers of the Centre?
– The Centre has the powers to :-
a). Provide administrative supervision of ADR at the Centre in accordance with the rules adopted by it or those agreed upon by the parties to disputes.
b). Resolve disputes through ADR methods in accordance with the relevant rules adopted by the Centre.
c). Co-ordinate, cooperate & conclude agreements & memoranda of understanding with specialized regional and international arbitration institutions and centres.
What category of disputes are within the jurisdiction of the Centre?
– Operations between license or permit holders in the Midstream & Downstream Petroleum industry.
– The provision of open access I’m gas and petroleum liquids operations.
– The provision of 3rd party access to facilities and infrastructure used for gas and petroleum liquids operations by owners operating on their own account.
– Gas trading & settlement transactions.
– Midstream & Downstream Petroleum labour matters.
– Referrals to the Centre by a court of competent jurisdiction.
– The commercial, technical and operational aspects of Midstream & Downstream Petroleum Operations among licensees or permit holders.
– Any other dispute involving companies within or outside Nigeria, in connection with Midstream & Downstream Petroleum operations.
Where it is a condition of its license or permit,a license or permit holder involved in a dispute in respect of Midstream & Downstream Petroleum operations shall submit the dispute to the centre’s jurisdiction, prior to proceeding with litigation.
What are the dispute resolution mechanisms to be used by the Centre?
– Expert determination
– Conciliation
– Mediation
– Arbitration
– Any other dispute mechanism the Centre may approve
The procedures for the use of dispute resolution mechanisms of the centre shall be as stipulated in the rules or guidelines made in the ADR Regulations.
What is the organisational structure of the Centre?
– The organizational structure and organs of the centre shall be as set out in the schedule to the Regulations.