Africa-Press – Gambia. Should Gambia have a potential and valid case against FAR Ltd (now Woodside Energy) concerning our Oil and Gas dealings? Ousman Mbai is a British and Gambian lawyer who has filed formal complaints with Australian authorities. Mr Mbai is alleging fraud and misconduct. The main issues revolve around transparency, potential misrepresentation of well data, and questionable financial transactions related to FAR Ltd’s exit from The Gambia.
If Gambia subsequently has a case against FAR Ltd and wants to solve the problem, Gambia should go for an efficient and cost-effective mechanism. In the Oil and Gas sector, ADR, in most cases, refers to Alternative Dispute Resolution. This includes various methods for resolving disputes outside traditional courts, including negotiation, mediation, and arbitration. ADR is ideal and favoured by the oil and gas sector due to its potential for a faster, more cost-effective, and more confidential resolution of disputes, particularly in complex international contracts.
Negotiation in ADR involves direct discussions between parties to reach a mutually agreeable settlement. Mediation is a non-binding process in which a neutral third party helps the parties reach a solution but does not impose a decision. The third method is arbitration, a binding process in which a neutral arbitrator or panel decides on the dispute.
The importance of ADR in the Oil and Gas industry gives it immense advantages over litigation. Oil and Gas contracts are often international, involve multiple parties, and span long periods, leading to potential disputes. They are also very complex. ADR also offers confidentiality, particularly arbitration, which litigation lacks and is crucial for protecting sensitive business information.
Another benefit of ADR is cost and time savings. It can be faster and less expensive than traditional litigation. ADR can also be less adversarial and preserve business relationships, helping maintain relationships between parties involved in ongoing projects.
Alternative Dispute Resolution can involve arbitrators and mediators with specific expertise to resolve technical disputes. It is particularly well-suited for the Oil and Gas industry, where complex engineering and project management issues are common.
On the other hand, litigation in the Oil and Gas sector is multifaceted, encompassing disputes related to contracts, environmental damage, property rights, and regulatory compliance. Climate change litigation, in particular, has emerged as a significant area of legal challenges, holding companies accountable for greenhouse gas emissions.
Litigation presents significant disadvantages, including high legal costs, reputational damage, and operational disruptions. The industry’s complexity, technical nature, high stakes, and international operations often lead to protracted and expensive legal battles, which impact financial performance and public image.
There are many success stories about the ADR mechanism. The United States of America has a long history of using mediation in energy-related conflicts, with many oil-producing nations incorporating mediation clauses into their production sharing contracts. The Middle East countries are increasingly adopting arbitration, with some, like Jordan, localising arbitrations by requiring them to be seated within the country. Saudi Arabia, for example, has issued directives for the government bodies to consider arbitration.
While The Gambia could pursue legal action against FAR Ltd, it might face significant challenges due to the country’s limited resources and the complexity of international litigation. I believe alternative Dispute Resolution (ADR) is generally favoured for its cost-effectiveness and speed, especially for international company disputes. Caution must be exercised.
Source: The Standard Newspaper | Gambia
For More News And Analysis About Gambia Follow Africa-Press
