Samsung built integration yard as a contractor, not as an investor – LADOL

The counsel to the Lagos Deep Offshore Logistics Base (LADOL) and Senior Advocate of Nigeria (SAN), Prof. Fidelis Odita, has stated that Samsung Heavy Industries (SHI) built the fabrication and integration yard at the LADOL free zone as a contractor to Total and other owners of Oil Mining Lease (OML) 130, and not as an investor.

Odita said in a statement yesterday that Samsung built the yard exactly the same way it built the Egina Floating Production Storage Offloading (FPSO) vessel. “Samsung is not an investor in the Egina FPSO anymore than it is an investor in the LADOL fabrication and integration yard which was built as part of the FPSO package contract,” he said. “It is wrong for Samsung to go about pretending that it invested its own $300 million in building the fabrication and integration yard at LADOL. It did not invest. It is a contractor, not an investor,” Odita added.

Odita also gave reasons why LADOL terminated SHI-MCI FZE’s sublease on Septmeber 5, 2018. “First, unremedied and material breaches of sublease covenant. Second, denial of its landlord’s title by inter alia asking the Nigerian Ports Authority (NPA), the head lessor, to carve out a portion of GRML’s leased land and grant a direct lease in favour of SHI MCI FZE, so that SHI MCI FZE could deal directly with all government regulators without needing to go through GRML or the Zone Management,” he explained. The third reason, according to the senior lawyer, was SHI MCI FZE’s anticipatory breach of the sublease agreement.

Source: THIS DAY

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