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LADOL, Samsung conflict takes toll on Nigeria’s economy, scuttles hook-up

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•As $3.3bn Egina FPSO arrives site

By Udeme Akpan

THE conflict between Lagos Deep Offshore Logistics, LADOL, and Samsung Heavy Industries, SHI, has started to take a toll on Nigeria’s economy, resulting to huge revenue losses.

Investigations by Vanguard showed that the $3.3 billion Egina Floating Production Storage and Offloading, FPSO, dedicated for the storage of $16 billion Egina oil, has arrived the Egina oil field, a major ultra-deep offshore project, located some 130 kilometres off the coast of Nigeria.

But the facility has not yet been hooked up to the seabed for eventual commissioning to begin oil production of the expected 200,000 barrels per day, bpd.

This, according to sources involved in the project, was due to non-supply of the essential materials for the take off as a result of the crises.

A reliable offshore source, who preferred not to be named because he was not permitted to speak, disclosed in a telephone interview with Vanguard that “it is true that the FPSO has arrived but we have not yet been able to hook it to the seabed because we don’t have materials.

“The materials cannot be brought here as they have been trapped at LADOL dockyard in Lagos. If the problem is not resolved early, it would certainly affect our ability to meet set targets.”

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Meanwhile, there were indications that the conflict would not end soon as investigation showed that the parties have not yet fixed any date for a meeting to resolve their differences.

Prof. Fidelis Oditah, LADOL’s lawyer  had stated that three aspects to the dispute involve, “first, the ownership of SHI MCI FZE, which is a joint venture between LADOL and Samsung formed to perform the Egina FPSO EPC contract between Samsung and Total Upstream Nigeria Limited.

“The second aspect is SHI MCI FZE’s sub-lease agreement with a LADOL affiliate, Global Resources Management Limited, GRML.

“The third is SHI MCI’s operating licence as a free zone enterprise within the LADOL free zone.”

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