Mediation in oil and gas Investor-State Dispute Settlement

Investor-state dispute settlement mechanism has evolved through historic changes. Nowadays, arbitration as one of the main dispute settlement mechanisms is preferred and common dispute settlement mechanism in this area. Investment arbitration with all the advantages, has been criticized from proceeding costs and long processes perspectives. Consequently, global tendency to propose and adopt more peaceful and ,flexible and efficient dispute settlement mechanisms which potentially can meet beneficiaries’ needs and endow proper enforcement feature to states and investors, has risen enormously. as a result, Mediation dispute settlement mechanism has the mentioned features, however, it should be noted that besides all its advantages and good points to parties, some challenges in this regard exist. in other words, in terms of enforcement challenges , legal bans and management challenges and pre - requisites still exists which may in turn can be considered as constraints to mediation and comprehensive study shall be carried out before adopting this method.