NUPRC calls for more resolution centres in oil, gas industry
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has advocated the establishment of more Alternative Dispute Resolution Centre (ADRC) within the upstream oil and gas sector in oil-producing regions.
The Commission Chief Executive, NUPRC, Mr Gbenga Komolafe made the call on Thursday during a Stakeholders’ Engagement and Consultation session on the Draft Rules of Procedure for the ADRC in Lagos.
Komolafe, represented by Executive Commissioner, Development and Production, NUPRC, Mr Enorense Amadasu, explained that the establishment of these centres 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 were 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.
The Commission Secretary and Legal Adviser, Mrs Olayemi Anyanechi noted that the Commission had been working diligently to make ADRC centres a source of pride for Nigeria and Africa.
She mentioned that NUPRC had invited stakeholders, mediators, arbitrators, industry leaders, and business lawyers to review and refine the ADRC laws and procedures.
According to her, once the final draft is agreed upon, the Commission plans to implement the ADRC processes at the centres.
Anyanechi said that these centres would 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 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 noted that the ADRC process had begun to yield positive results, emphasising that the centres would focus on oil-producing communities to reduce costs and address disputes peacefully.
