NUPRC Inaugurates Body Of Neutrals To Resolve Disputes In Oil, Gas Sector
By Abimbola Abdullah
Poised to enthrench peaceful atmosphere that would foster optimisation of the nation’s hydrocarbon potentials, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has inaugurated Body of Neutrals to ensure amicable resolution of disputes in the industry.
The Chief Executive Officer, NUPRC, Gbenga Komolafe, said the Alternative Dispute Resolution Center was established in the commission’s quest to provide quality, efficient and cost effective dispute resolution services within the upstream oil and gas industry.
Noting that disputes have hampered the effective utilisation of about N220 billion host community development funds earmarked by the commission, he said the inauguration of the Body of Neutrals of the Alternative Dispute Resolution center would address some of the host community matters and allow for a peaceful environment for oil and gas production and as well bost the nation’s revenue.
“As we speak, we’ve attracted about N60 billion on the naira part, and about $100 million, on the dollar side, into this post community development trust accounts (totaling about N220 billion). And you recognize the fact that it is a paradox that when you have that level of funding, you expect that it should impact positively on the host communities in terms of value addition that we should see visibly.
“I need to equally state that in the design of the implementation of this host community fund, the way the commission has proactively implemented the disbursement, the decision on the expenditure of this fund lies clearly within the trustees of these host communities, which the host communities freely elected, and the account, the expenditure, the administration of the account, rest clearly within the host communities without any government interference,” he said.
The dispute resolution centers were situated in Lagos and Bayelsa.
Komolafe said: “Our goal is to establish a center grounded in fairness, efficiency and integrity, offering a platform where disputes can be resolved outside the often cumbersome traditional process, our methods enable parties to reach amicable solutions through radiation conciliation and other alternative dispute resolution methods.
“Our sector is not clearly an institution. It stands as a record 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 funded on the principles of equity and justice for All stakeholders, regardless of their background or the nature of their operations”.
Noting that members of the Body of Neutrals include lawyers, retired judges, oil and gas industry experts and other subject matter experts, he said their roles are multifaceted, as they are entrusted with the oversight of disputes and the mediation of matters that falls within the center’s jurisdiction.
“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 center is acute in handling disputes of various complexities and skills. 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,” he said.
The Commission’s Secretary and Legal Adviser, Mrs Olayemi Anyanechi, said the body would serve as an independent forum in settling disputes in a fair and equitable manner.
She said NUPRC has always prided itself as upholding ethical conduct and the inauguration stands as a commitment to excellence and reflect its unwavering believe in peaceful resolution of disputed to aid oil and gas production.
