International Dispute Resolution and Arbitration in the Oil and Gas Industry

Introduction

The likelihood of disputes arising in the oil and gas industry is high due to the various types of contractual relationships that exist.  Further, the costs of hydrocarbon exploration and exploitation is extremely high as are the value of oil and gas contracts and parties to a dispute need to have the necessary knowledge and skills to firstly avoid where possible the disputes and alternatively to manage the whole dispute resolution process in an efficient and effective manner.

This training course provides in-depth information on the types of disputes that can arise and the several available methods of dispute resolution, which can be consensual, adjudicative, or hybrid. The course further assists the participants to obtain effective skills in dispute management and conflict avoidance. Managing disputes using the most cost-effective and efficient methods available would be a primary goal of the training during this course.

This Dispute Resolution and the Arbitration training course is designed to be highly practical and includes hands-on workshop sessions and a mock dispute demonstration. This training course focuses on the available institutional rules or the ad hoc procedures and the implications this choice may have on the outcome of the dispute. Taking into account cultural considerations specific to each dispute, the course provides training on the choice of law, seat, and venue for the arbitration.

This training course will highlight:

• The fundamental types of disputes in the Oil and Gas Industry
• The different methods of dispute resolution available
• Preference for International Arbitration over Litigation
• Dispute Resolution Clauses in various Oil and Gas Contracts
• Conciliation, Mediation, and Settlement of Disputes
• Enforcement proceedings

Objectives

By the end of the training, participants will be able to:

• Comprehensively understand the different types of dispute resolution methods
• Understand the main dispute resolution clauses in international oil and gas contracts
• Know the available mechanisms to resolve international oil and gas disputes
• Be aware of the approaches to conflict, management, avoidance, and settlement
• Be able to assess and apply the best means to resolve disputes in different potential scenarios

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practice. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations.

Who Should Attend?

This training course is appropriate for a wide range of professionals but will greatly benefit:

• Legal Managers, Legal Counsel
• Commercial and Business Managers
• Contracts Administrators, and Managers
• Commercial, Financial and Insurance Professionals
• Project And General Management

Course Outline

Day 1: Introduction to International Disputes in the Oil and Gas Industry

• Overview of types of disputes in the Oil and Gas Industry
• Contribution of the oil & gas sector to the development of arbitration
• Substantive/commercial issues that have arisen in recent oil & gas arbitrations
• Preference for International Arbitration to Litigation
  • Neutrality of Process
  • Party autonomy
  • Cost-Effectiveness and Speed
  • Enforceability of the Award
  • Confidentiality of Proceedings
• International Arbitral Institutions
• International Chamber of Commerce (ICC) International Court of Arbitration
• The London Court of International Arbitration (LCIA)
• The American Arbitration Association’s International Center for Dispute Resolution (AAA) / ICDR
• Arbitration under UNCITRAL Rules
• Ad Hoc Arbitration

Day 2: Dispute Resolution and Arbitration Clauses in Oil and Gas Contracts

• Dispute resolution clause in:
  • Acquisition Contracts
  • Production Sharing Contracts
  • Joint Operating Agreements
  • Service Agreements
  • Charter Party
  • Analysis of various clauses
• Disputes in the oil and gas sector
• Disputes with host governments
• Environmental claims
• Shareholder value related issues
• Regulatory issues
• Boundary Issues
• Trade restriction among others
• Breach of contracts

Day 3: Applicable Law and Dispute Resolution

• Legal Framework for International Arbitration
  • Arbitration Agreement or Clause
  • Arbitration Conventions and Investment Treaties
  • Arbitration Procedural Rules
  • National Laws
  • National Courts
• The legal environment in which oil and gas contract operates:
• Constitution
• Domestic law
• Common law
• Civil law
• Islamic law
• International law
• Energy charter treaty
• Proper law of contract
• Law of arbitration
• Procedure of arbitration
• Curial law of the venue of arbitration
• Multilateral and bilateral treaties
• The legal position of conciliation and mediation

Day 4: Various Modes of International Dispute Resolution

• Expert determination
• Mediation
• Conciliation
• Arbitration
• Ad-hoc and institutional arbitration
• Venue of arbitration
• Enforcement of award
• Sovereign immunity and other problems of suing foreign governments
• Benefits and challenges of mediation of oil and gas disputes over arbitration
• Group exercise: Understanding the implied waiver of Sovereign Immunity
• Group exercise: Mock Arbitration & Mediation

Day 5: Limitations of International Arbitration, Strategy, Tactics, and Enforcement

• Limitations of International Arbitration
  • Costs of arbitration
  • Limited power of the arbitrators
  • The difficulty of bringing three or more parties before the same arbitral tribunal
  • Delay due to the difficulty of communication and language and inconsistency
  • Fees and expenses of arbitrators
  • Substantial expenses depending on the weight of the dispute in question
• Litigation and arbitration: Strategy, tactics, and enforcement
• Appointment of an arbitrator
• Appointment of legal counsel
• Making of claim and counterclaim
• Disclosure of documents
• Witnesses and cross-examination
• Injunctions and other interim orders
• Identifying assets
• Enforcement methods
• Treaties
• Local laws relating to the enforcement
• Problems in multiparty disputes
• Confirmation of final awards - the oil & gas experience
• Enforcement proceedings
• When to consider settlement
• Commencing negotiation
• Documentation of settlement
• The full and final settlement 
• Case Study: Public Policy on enforcement of awards
• Settlement of Disputes