A Critique of Uganda’s Institutional Framework in the Arbitration of Oil and Gas Disputes

Abstract

This research is premised on a conviction that the institutional arbitration framework of Uganda is not in tandem with the expectations of the stakeholders in the oil and gas industry although arbitration is globally accepted as the most preferred mode of dispute resolution in the oil and gas industry, in particular and in international commercial transactions, in general. The research analyzes the characteristics and peculiarities of the oil and gas industry, which is not only one of the most vibrant and dynamic industries in the world, but also one of the most dispute-prone. It explains the reasons why this sector has more disputes than any other business sector and discusses how parties can effectively manage or at least mitigate that risk. The study reviews the arbitration institutional framework in Uganda by analyzing the laws, rules and practice that govern the processes of arbitration. While doing this, the research analyses the effectiveness of the law in achieving its goal. This is done by comparing its result with day-to-day case samples. Furthermore, the research critiques the regulatory and infrastructural framework for arbitration in the country. Having analyzed the current arbitration institutional framework in Uganda, the study endeavors to compare the same with that of other countries in the region, (Eastern Africa) with case studies from the rest of Africa and other countries outside Africa. This is informed by the fact that since most developing countries like Uganda do not have the technological and financial capacity to harness the resource (oil and gas), other multi-nations, National and International oil companies are always invited to participate in the industry and yet they always bring with them their preferred mode of dispute resolution, which is arbitration. The study concludes by highlighting the similarities and differences between Uganda’s arbitration institutional framework and that of various countries in Africa and particularly those in East Africa. This is done on the different premises of the usage of arbitral processes, regulatory set up, the tribunals, the seats offered and the career development in the arbitration field. This comparative study, to a small extent, stretches to other jurisdictions within and without Africa which is informed by the fact that the oil and gas industry attracts players across the globe-making it instructive to consider the institutional and legal set up in other jurisdictions. The paper ends by making recommendations vis-à-vis the findings arrived at, with the aim of improving on the legal and institutional arbitration framework in Uganda.