The Suitability of Expert Determination in Settling Oil and Gas Disputes and Its Reception under Scottish Law

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.