The UK Oil and Gas Authority (OGA) has launched a year-long ‘UKCS Mediation Pilot’ which aims to test the extent to which mediation can resolve disputes between oil and gas licensees, operators and infrastructure owners in the UK Continental Shelf.
The UK Oil and Gas Authority (OGA) has launched a year-long ‘UKCS Mediation Pilot’ which aims to test the extent to which mediation can resolve disputes between oil and gas licensees, operators and infrastructure owners in the UK Continental Shelf.
‘The OGA has found that disputes have generally arisen due to entrenched licensee behaviours or communication breakdowns. They can be costly and time consuming for the companies involved, as well as threatening the delivery of MER UK,’ the authority said in a statement.
‘While the OGA has a number of formal powers which can be used to resolve disputes, some matters could be better addressed by the parties themselves through mediation,’ it added.
During the mediation pilot, the OGA may ask the parties involved in a dispute to proceed to mediation. If the parties agree to mediate, the OGA will refer them to the Centre for Effective Dispute Resolution (CEDR).
If after the mediation the parties still remain in dispute, then the OGA may, either at the request of one of the parties or on its own initiative, resolve the dispute using its formal dispute resolution powers.
