Offshore staff
LONDON – Britain’s Oil and Gas Authority has initiated a year-long ‘UKCS [UK continental shelf] Mediation Pilot.’
The aim is to assess how mediation could be applied to can resolve disputes between UK offshore oil and gas licensees, operators, and infrastructure owners.
According to the OGA, disputes arise typically because of “entrenched licensee behaviors” or communication breakdowns. Aside from the cost and time impact, the authority added, these differences could hinder delivery of the MER UK (maximizing economic recovery of the UK’s remaining hydrocarbon resources).
Although the OGA has various powers that it can exercise to resolve disputes, in certain cases it prefers the parties concerned to go through mediation, conducted by a neutral third party unconnected to the dispute.
The third party acts as a conduit between the parties, encouraging discussion, summing up arguments, and highlighting areas of agreement and disagreement.
Ideally, a resolution could then follow relatively quickly.
During the pilot program, the OGA may suggest parties involved in a dispute proceed to mediation at any point in the authority’s measured escalation process, or as part of its usual stewardship process.
Assuming the parties agree to mediation, the OGA would refer them to the Centre for Effective Dispute Resolution. If this too fails, the OGA may step in to apply its formal dispute resolution powers.
02/11/2020
