The Suitability of Expert Determination in Settling Oil and Gas Disputes and Its Reception under Scottish Law
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Abstract
Generally speaking, disputes are inevitable part of commercial relations which needs to be settled, of which oil and gas (O&G) industry is no exception.
O&G industry being a technical, high risk, capital intensive industry requires a fast and cost-effective dispute resolution process that will not disrupt parties operations while promoting parties working relationship.
This paper is a review of current literature and decided cases in the areas of expert determination (ED) in international O&G technical disputes, particularly how Scottish courts view and interpret ED clauses in O&G contracts. It will focus on the reasons why ED is preferred a more suitable means of settling O&G disputes than other forms of alternative dispute resolution and litigation. These reasons stems from the technical nature of oil and gas issues and the appeal of a more timely decision than international arbitration, the final and binding determination of an expert, it is a speedier, more flexible, cost-effective form of dispute resolution. More importantly, ED preserves parties relationship and trade secrets.