NUPRC seeks speedy resolution of disputes in oil, gas industry
By Yusuf Yunus
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has advocated for the establishment of Alternative Dispute Resolution Center (ADRC) centers within the upstream oil and gas sector in oil-producing regions.
Mr Gbenga Komolafe, Commission Chief Executive, NUPRC, made this announcement on Thursday during a Stakeholders’ Engagement and Consultation session on the Draft Rules of Procedure for the ADRC in Lagos.
Komolafe was represented by Mr Enorense Amadasu, Executive Commissioner, Development and Production, NUPRC explained that the establishment of these centers is crucial for stabilising and resolving disputes related to commercial, production, and host community issues, among others.
Komolafe noted that this initiative marks a significant advancement in improving the efficiency, fairness, and effectiveness of alternative dispute resolution within the upstream industry.
“As we gather here, our shared goal is to ensure that the ADRC operates with the highest standards of transparency, integrity, and responsiveness in line with the needs of the industry,” he said.
He highlighted that the ADRC was established in 2021, reflecting the commission’s commitment to providing a robust framework for timely dispute resolution.
Komolafe emphasised that ADRC mechanisms are essential for easing the burden on the courts, reducing litigation costs, and fostering a collaborative approach to dispute resolution.
He stressed the importance of creating a harmonious business environment to ensure the sector’s continued growth.
“The timely and equitable resolution of disputes in this critical sector is paramount,” he added.
Komolafe further stated that the ADRC aims to deliver an innovative, efficient, and cost-effective approach to dispute resolution, reinforcing industry stability and promoting sustainable growth.
He underscored the importance of collaboration and active stakeholder participation in developing the ADRC Draft Rules of Procedure.
Mrs Olayemi Anyanechi, Commission Secretary and Legal Adviser, noted that the Commission has been working diligently to make ADRC centers a source of pride for Nigeria and Africa.
She mentioned 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 highlighted the need for NUPRC to regulate and oversee the industry to resolve disputes efficiently outside the courtroom.
She concluded 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
