The presiding judge, Chukwujekwe Aneke of the Federal High Court in Ikoyi, Lagos, will on June 3, 2014 rule on the objections raised by parties in the lingering legal battle between the Lagos Deep Offshore Logistics (LADOL) and Samsung Heavy Industries/Total over alleged local content breaches in the $3.8 billion Egina oil platform project.
The contract allegedly awarded to Samsung and LADOL by Total for the integration of a Floating Production Storage and Offloading (FPSO) platform also known as Egina project at LADOL base in Lagos, assumed litigation following alleged schemes by Samsung to exclude the indigenous firm from the juicy job.
Speaking with journalists after the hearing, Fidelis Oditah, counsel to LADOL, said the case was an attempt to test the efficacy of the Nigerian Local Content Act 2010, as it relates to its enforcement in the nation’s oil and gas industry.
“The contention of my client, he noted, “is that Samsung has no right to choose another partner to override the place of LADOL, after using the latter as the local content vehicle to win the contract”.
He alleged that “the contract had allocated the sum of $214 million for the construction of the fabrication yard and integration of other facilities at LADOL, but Samsung is trying to pocket the money in sabotage to Nigerian economy.”
“The court will rule on this by June 3, 2014, it is important to note that the Nigerian Content Monitoring Board is set out to ensure that major oil and gas projects in Nigeria must leave a legacy facility for the benefit of Nigerians, and must create job for Nigerians,” he said.
Oditah had earlier sought 19 reliefs against Samsung and other defendants before the court, asking for a declaration that the contract awarded by Total to Samsung on or about March 15, 2013 is subject to the Nigerian Oil and Gas Industry Content Development Act of 2010.
Oditah, who noted that the contract also involves the construction of a train ing school at LADOL base so as to create 30-50,000 jobs, also alleged that Samsung decided to take the project to Korea, thereby denying LADOL of the benefits of the project after Total has awarded the contract to both companies.
Therefore, he said that his client has the right to sue for local content breaches in line with the provisions of the Content Act 2010.
LADOL, according to him, is a local content partner to Samsung based on the contractual relationship with Samsung to construct Egina FPSO platform for Total in its base.
Others joined in the suite are Total Upstream Nigeria Limited (Total), and the Nigerian Content Monitoring Board (NCDMB).
Amaka Amagor
