By Adewale Sanyaolu
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), says the agency is set to dismantle all legal encumbrances within the nation’s oil and gas space with the coming in force of Draft Rules of Procedure for the Alternative Dispute Resolution Center (ADRC).
Commission Chief Executive (CCE) of NUPRC, Mr. Gbenga Komolafe, disclosed this at the Stakeholders/Consultation on ADRC Draft Rules of Procedure in Lagos.
He explained that the ADRC was established in 2021, to showcase the Commission’s commitment to providing a robust framework for resolving disputes in a timely manner.
The NUPRC boss added that NUPRC recognises that ADR mechanisms can play a crucial role in alleviating the burden on our courts, reducing litigation costs, and fostering a more amicable and collaborative approach to dispute resolution.
Komolafe who was represented by the Executive Commissioner, Development and Production, Mr. Enrense Amadasu, said today(yesterday), marks a significant step forward in its ongoing efforts to enhance efficiency, fairness, and effectiveness of alternative dispute resolution within the upstream industry.
The NUPRC boss said, the draft rules being presented are the result of extensive research, and have been benchmarked against international best practices, while taking into careful consideration the industry within which Nigeria operates, saying “We, are, however not ignorant of the value your insights will provide to ensure the practical effectiveness of these rules’’.
‘‘As we gather here, our shared goal is to ensure that the ADRC operates with the highest standards of transparency, integrity, and responsiveness in consonance with the needs of the industry”.
As critical stakeholders, you undoubtedly recognise the profound impact of the oil and gas industry on the stability of our economy and the nation at large. Thus, it is imperative that a harmonious business environment is fostered to ensure continued growth of the sector.
The timely and equitable resolution of disputes within this critical sector is not just essential but paramount. The ADRC is committed to delivering an innovative, efficient, and cost-effective approach to dispute resolution, designed to reinforce industry stability and catalyze sustainable growth’’.
According to him, the development of the ADRC Draft Rules of Procedure is not merely an administrative task but a collective endeavor that requires the active participation of all relevant stakeholders.
He assured stakeholders that, the Commission is fully committed to ensuring that the ADRC becomes a beacon of excellence in dispute resolution, saying the commission aims to establish procedures that are not only legally sound but also user-friendly and capable of delivering timely and just outcomes for all parties.
Also speaking, Commission Secretary and Legal Adviser, Mrs.Olayemi Anyanechi, noted that the Commission has been working diligently to make ADRC centers a source of pride for Nigeria and Africa.
She hinted that NUPRC has invited stakeholders, mediators, arbitrators, industry leaders, and business lawyers to review and refine the ADRC laws and procedures.
She said that once the final draft is agreed upon, the Commission plans to implement the ADRC processes at the centers.
According to Anyanechi, these centers will mediate and resolve disputes in the Nigerian upstream oil and gas sector.
“The Nigerian oil and gas industry is vital but can be contentious, with many cases arising. When the Commission was established, one of its priorities was to address dispute resolution effectively.
For instance, disputes from the 2020 marginal field allocations were resolved through engagement with awardees outside the courts,” she explained.
Anyanechi also highlighted that issues related to the Petroleum Industry Act (PIA) and host communities had required the Commission’s intervention.
“In 2024 alone, the Commission handled around 70 court cases, which incurred substantial costs. This heightened the need for NUPRC to regulate and oversee the industry to resolve disputes efficiently outside the courtroom’’.
She stressed that the ADRC process has begun to yield positive results, emphasising that the centers will focus on oil-producing communities to reduce costs and address disputes peacefully.