UK Continental Shelf oil and gas mediation pilot program extended

May 10, 2022

The North Sea Transition Authority (NSTA) has extended the UKCS mediation pilot in order to gather further data to judge its overall value.

The program was first launched in 2020 to test the extent to which mediation can resolve certain disputes between oil and gas licensees, operators and infrastructure owners in the UK Continental Shelf.  It was extended in 2021 following positive, but limited, initial take-up as industry dealt with the challenging conditions caused by the Covid-19 pandemic. 

To analyze the benefits of the scheme, more data from parties who have used it is needed, so the pilot will be extended until at least six mediations have taken place or until 31 December 2023, whichever is sooner. 

“We have received positive feedback from the companies that have used the scheme and see real opportunities for successful collaboration for the resolution of issues and disputes in the UKCS,” said Jane de Lozey, NSTA Head of Disputes and Sanctions. “To effectively analyze the benefits of the scheme for industry, more data is needed and as a result we have extended the pilot.”

This pilot scheme covers mediations provided by CEDR for parties referred by the Oil and Gas Authority (the ‘OGA’) under their remit to consider collaborative solutions to disputes that occur within the upstream oil & gas industry and to maximize the economic recovery of petroleum that is found in the UK.

For further information on the project, click here.

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