Examining the Role of National Courts in the Arbitral Process in the Oil And Gas Industry:

Abstract

Merchants and investors have used International Arbitration (IA) for centuries in settling disputes. International Arbitration has become a benchmark for resolving disputes in certain industries such as energy, construction, commodities, shipping and insurance. Over the last five decades or so, the international community has adopted International Arbitration as an alternative dispute resolution mechanism. As of October 1, 2009, 142 of the 192 United Nations Member States had adopted the New York Convention. Currently, about 144 countries have ratified the New York Convention. International arbitration is one of the Alternative Dispute Resolution (ADR) mechanisms in settling contractual disputes and it is considered as a fair and efficient way of mitigating risk associated with international business transactions and investments. In 2007, the International Centre for Settlement of Investment Disputes (ICSID) indicated that out of 123 cases listed as pending, forty-six (representing 37%) of such cases were energy related disputes. This paper examines the role of national courts in the process of arbitrating disputes in the oil and gas industry using primary sources such as interviews and secondary sources such as books, articles, journals to do comparative and qualitative analysis. It also discusses arbitration generally, the types and forms of arbitration in international oil and gas contracts, dispute resolution involving oil and gas assets in Africa and limitations faced by national courts in the performance of their role in the arbitral process of disputes in the oil and gas industry. The paper recommends that, to improve on the role of national courts in arbitration of disputes in the oil and gas industry, there should be a deliberate move to have more training of lawyers, judges and other stakeholders for them to have a greater appreciation of the fundamental principles of international arbitration