Many Joint Operating Agreements (“JOA”) in the Oil industry in Nigeria today provide for Arbitration as a dispute resolution mechanism. This is not surprising because business men elect for arbitration in commercial disputes (despite its cost implication) to get results within a short time. With contracts involving huge sums of money Arbitration is key to getting effective results without delay as it is meant to dispose of cases with speed.
One of the advantages of arbitration over litigation is that parities have a freedom of choice of tribunal, venue, law and procedure. A fair number of the Arbitration clauses in these JOAs provide for institutional arbitrations as opposed to ad hoc arbitrations. It is typical to find clauses in the arbitration agreements which incorporate the rules of the arbitral institutions such as the rules of the London Court of International Arbitration (“LCIA Rules”) into the agreement.
Click here to read the article