Arbitration As A Conflict Resolution Approach To Oil Spill Compensation Payment In Oil Producing Communities Of Rivers State, Nigeria

Abstract

From time to time, the oil and gas prospecting firm seeks and obtains oil deposits in commercial quantity either offshore or onshore which belongs to the oil bearing community which she uses for exploration, exploitation and transportation of crude oil. But unfortunately; such crude oil and gas escape causing oil spill, consequent upon facility/equipment failure or any other cause(s), which subsequently destroys all economic assets used in fishing or cash crops and economic trees if it occurs on land. This unfortunate incident makes the oil bearing and host community to demand compensation, which in most times breeds in conflict such that the two parties engage in tirade of accusations and counteraccusations. The conflict is such that it has defiled all known antidotes, real or imaginary. Until arbitration was resurrected, studied and applied, before it became the messiah or saviour of the two warring groups. Hitherto, the conflict had led to the destruction of equipment/tools, loss of income, loss of company/man hours, peace, and abduction/kidnapping of expatriates/indigenous staffers. In the light of the grave consequences, the author recommended both direct and indirect approaches to deal with the incessant conflicts between the oil and gas firms and oil bearing and host community. Having known that conflict is an ill-wind that blows nobody any good.