Oil Industry Disputes

Rights over oil and gas in today’s modern economy is the source of much tension and the last thing the industry titan’s want to do is go to court over legal matters.

Mediation is often the first step after negotiations come to a halt. When the concerns of big business are largely monetary, mediation can provide a cost effective, flexible and confidential alternative solution to litigation.

The objective is to establish an outcome that satisfies all involved parties. It is one that may not allow either party to get everything sought, but does not result in the loss of everything they each want.

Joint Sessions

If a solution cannot be met when either party is sat across from each other (as in a joint session), invariably, talks will migrate to separate rooms with the mediator acting as liaison.

This tends to slow down proceedings however, as any concerns, interests and/or motives are allowed to enter into the discussion. In this way negotiations, become more productive in reaching a conclusion.

Adversary or Emissary

Most oil and gas companies control large shares of the sector and exist in oligopolies. This means that despite the dispute, they will most likely continue to need and rely on each other in the future.

Mediation is a practical way to solving arguments between parties by removing fault from the equation, allowing ongoing working relationships to remain intact.

It is for all these reasons that the oil and gas industries are turning ever more towards mediation and away from legal action.