Govt creates expert panel for time-bound resolution of oil, gas disputes

The ‘Committee of External Eminent Persons/Experts’ for dispute resolution will comprise former oil Secretary GC Chaturvedi, Oil India Ltd former head Bikash C Bora and Hindalco Industries Ltd Managing Director Satish Pai, according to an official notification.

The panel will have a tenure of three years and the resolution will be attempted to be arrived at within 3 months.

India’s oil and gas sector has been plagued by disputes from cost recovery to production targets, and companies as well as the government have resorted to lengthy and costly arbitration followed by judicial review – a process that takes years to resolve differences.

The notification said the committee will arbitrate on a dispute between partners in a contract or with the government over commercial or production issues for oil and gas. “Any dispute or difference arising out of a contract relating to exploration blocks/ fields of India can be referred to the committee, if both parties to the contract agree in writing for conciliation or mediation and further agree to not invoke arbitration proceedings thereafter,” it said.

Once a resolution has been referred to panel, the parties cannot resort to arbitration or court case to resolve it.

“The committee shall exercise all powers and discharge all functions necessary for carrying out conciliation and mediation proceedings for resolution of the disputes between the parties as per the provisions of the Arbitration and Conciliation Act, 1996, and endeavour that the parties arrive at a settlement agreement within three months from the date of the first meeting of the commit-tee,” it said.

The members and the parties may, however, extend the time for arriving at a settlement agreement by mutual agreement.

“The members of the committee shall at all times remain impartial to the parties during the course of the conciliation or mediation proceedings,” the notification said.

The committee acting as conciliator or mediator will be allowed to take services of third-party or expert agency to aid and assist it in discharge of its functions as and when required.