Dispute Mechanism in Petroleum Industry; an Overview of Arbitration Frontiers

Abstract

This article seeks to show arbitration as a dispute resolution mechanism in the resolution of investment or commercial disputes which inevitably occur in the Petroleum industry. Treaties are entered into between states in a bid to allow nationals of a particular state to invest in another thereby bringing income to both foreign investors and the host state. This article reveals that bilateral investment treaties are often entered into to provide for arbitration clauses for settling any investment dispute that may arise between parties to the treaty. The article further shows that for the purpose of having a unified framework for settling investment disputes the international Centre for settlement of investment disputes was established through the convention on the settlement of investment disputes between states and nationals of other states. In Nigeria, certain statutes make provisions for the settlement of investment disputes through arbitration. The article recommends the need for well-established institutional arbitration centres in Nigeria. Furthermore, this article recommends that all statutes on petroleum industry should include provisions on Arbitration as a mechanism for dispute resolution. Conclusively, this article establishes that arbitration is a necessary mechanism to resolve disputes in the Petroleum industry as it helps disputants to achieve amicable resolution of disputes.