UK's OGA to Trial Mediation of Offshore Disputes

The UK’s Oil and Gas Authority (OGA) has launched a pilot project to evaluate the extent to which mediation can resolve disputes between oil and gas licensees, operators and infrastructure owners working on the UK shelf.

Such disputes often arise because of entrenched behaviours or communication breakdowns, the regulatory body said in a statement on February 3, and can be costly and time consuming for the companies involved, while undermining efforts to maximise offshore recovery.

“The aim of mediation is to encourage parties themselves to resolve the dispute, rather than a decision being handed down to them by a judge or indeed the OGA,’ the authority said. “This resolution could be done over a relatively quick time period, otherwise the dispute could continue for many months and even years.”

Under the pilot project, the OGA will invite parties in a dispute to settle their issues through mediation, with the Centre for Effective Dispute Resolution (CEDR) acting as a mediator. If mediation fails to yield results, the OGA can use its formal powers to resolve the disagreement.