Dispute Resolution in Oil and Gas Contracting

Dispute Resolution in Oil and Gas Contracting

Identify and describe the binding methods of dispute resolution mechanisms available to oil and gas disputants. In describing the above, would it be right to say the identified processes are final in resolving the disputes?

Peaceful settlement of disputes

The peaceful settlement of disputes is in the settlement of international disputes by peaceful means in such a way that does not compromise nor peace and security. Prohibiting the use of force is considered by the International Court of Justice a basic principle and structure of international law contemporary [1]. We distinguish two types of actions for resolving conflicts: political and diplomatic methods and international arbitration.

Methods political or diplomatic

Have in common that is the agreement of the States concerned which puts an end to the controversy, maintaining the capacity of its resolution. However, they may have the assistance of a third party to the dispute.

Negotiations

It is the most convenient, is based on direct contact between the States that motivate the dispute. It is always the first step in any process of diplomatic settlement. Even the United Nations Charter determines that it may submit a matter to the Security Council in advance so it has not been made use of negotiation. It consists of direct negotiations at the time that the dispute is, countries expressed their position on a specific issue that confronts them, try to reach a settlement in which their interests are not seriously affected by the concessions they have to give it is an informal method and is the oldest diplomatic. Unfortunately, it is inefficient to handle complex disputes [1].

Good offices and mediation

There is talk of "good offices" when a country, warning that there is a dispute, tries to bring the parties to the dispute through diplomacy. The intervention of the third country can be spontaneously or at the request of the countries involved in the dispute. The good offices come even when a conflict has broken out. The state can encourage third parties to initiate or resume negotiations, or attempt to use another method to solve the dispute [6]. The difference between good offices and mediation is that the former method there is no "proposal" to resolve the dispute, only attempts to bring the parties to reach a solution. On the other hand, mediation may mediate a proposal to resolve the conflict, although this proposal is not binding on the parties in dispute [6].

Settlement

It has a semi-judicial because it relies on the methodology used in the arbitration process. The reconciliation commission has to elucidate the facts, hear the parties and propose solutions that do not necessarily bind the parties, but the ultimate decision does not have the weight of a legal determination. It is more formal and less flexible than mediation, is a more rigorous methodological standards, management of the findings is more stringent, if a mediator's proposals are not accepted, you can make new choices until all parties are satisfied. The conciliator tends to generate a single report ...