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Oil Firms In Legal Tango Over Local Regulations Violation

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Lagos Deep Offshore Logistics (LADOL), operators of the Egina Floating Production Storage and Offloading (FPSO) has sued its partner Samsung Heavy Industries, over an alleged disregard for Nigerian laws and regulations on doing business.
LADOL is in charge of logistics for the Egina FPSO while Samsung handles the fabrication and integration.
There has been wrangling between the partners over claims that LADOL imposes charges outside the contract of the Lagos free zone thereby making it unattractive to investors.
According to media reports, LADOL had allegedly imposed a one per cent charge on the $3.3 billion Egina Floating Production Storage Offloading (FPSO) by Samsung Heavy Industries which the company claimed was not in the original contract documents.
The company denied the allegation. But the disagreement between the companies has snowballed.
In a statement issued over the weekend, LADOL’s managing director, Jadesimi Ladi, stated that her company had filed a suit at the Federal High Court against Samsung alleging that its partner’s operation in Nigeria has been fraught with “mischief and reckless disregard for stakeholders” including regulators, employees and Nigerian citizens.
“Samsung has brazenly and persistently flouted Nigerian laws and breached contracts it duly signed with Ladol and its affiliates,” the statement read.
According to Ms Ladi, the suit was precipitated by Samsung’s “refusal to abide by conditions of service for Nigerian staff and abuse of Nigerian workers, violating procedures of the Nigerian Customs Service, Violation of Nigerian immigration procedures, breaches of Nigerian Content Development and Monitoring Board regulations, refusal to remit statutory tariffs to the federal government despite several demands from the Nigerian Export Processing Zone Authority.”
She also alleged that Samsung was “sponsoring the publication of malicious and false information about Nigerian government agencies and the business climate in Nigeria, thereby denigrating the Ease of Doing Business regimen in Nigeria, Persistent failure to comply with rules and regulations of the Free Zone, concealing sums of money provided for in the head contract from LADOL, their local content partner.”
LADOL’s boss further accused Samsung of “demanding huge unconscionable variations from their client (Total/NNPC Joint Venture) and by extension from the Nigerian people, exclusion of their Nigerian content partner from operational activities, and thereby refusing to transfer technology and blatant repudiation of major contractual terms in agreements duly signed with Ladol.”

“Samsung’s activities threaten the safety and peace of the free zone and of other responsible Nigerian and foreign Enterprises doing legitimate business within the zone. Samsung is committed to operating in a manner that brazenly defies our Nigerian regulators, flouts our laws, maltreats Nigerian workers and sabotages the economy of our dear country,” the statement claimed.
Ms. Ladi added that her company has, therefore, decided not to renew Samsung’s licence.
“Samsung failed to meet the minimum standard required to qualify for an Operating License in a Free Zone, their license has therefore expired without renewal Samsung’s Sublease Agreement has been duly terminated”
“Ladol has been the local content partner for Samsung Heavy Industries Nigeria (Samsung) for the Egina FPSO project. As a responsible Nigerian company, Ladol has put public duty and national interest ahead of its private interests and concerns for some time, with respect to the Egina project and the actions of Samsung. However, LADOL now has no choice but to bring to the fore issues that have arisen due to the actions of Samsung.”

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Oil & Energy

Motorists Want NNPC Mega Filling Station In Bori

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Motorists plying the Ogoni axis in Rivers State have urged the Nigeria National Petroleum Corporation, (NNPC) and the Department of Petroleum Resources, (DPR) to make real their promise of establishing at least one of the mega filling stations in Bori, headquarters of Khana Local Government Area to give the people access to the facility.
Some of the motorists and residents of Bori who spoke with The Tide said the absence of the NNPC filling station in Bori has made them to continue to suffer exploitation in the hands of private filling station owners who inflates their prices at will.
A commercial motorist,  Mr Paul Ndeemua  who spoke with our reporters said motorists plying the Bori route were excited when they heared of plans by government  to build a mega filling station in Bori, but they were surprised that there was no trace of the project in Bori long after the plan was made public through the media chat.
He said:  “ We commercial motorists operating within the Bori axis were happy when we learnt sometime ago that the government was going to build mega filling station in Bori like other parts of the state were they are located, but it’s unfortunate that almost three years after the plan was announced, nothing has happened. I want to use this opportunity to call on the NNPC and the DPR to fulfill their promise by building the filling station in Bori. The project will go a long way to help commercial motorists in the area, especially in terms of access to products.”
Another commercial motorist, Mr Akanimo Udosen who spoke with The Tide also decried the conspicuous absence of the NNPC  Mega Filling Station in Bori despite its location in other places.
Resident of Bori also called on the Government to build a mega filling station in Bori to serve the people of the area. Apart from assess to petroleum products, the student said the project will also give a face lift to Bori.
He called on the Rivers State Government and stakeholders in ogoni to address the rising challenges of insecurity in Khana LGA to attract investment in the area.

 

Taneh Beemene

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Oil & Energy

PPPRA To Audit Infrastructure In Downstream Oil Sector

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The Petroleum Products Pricing Regulatory Agency (PPPRA) says it will commence a comprehensive audit and survey of downstream oil and gas logistic facilities in the country.
Mr Abdulkadir Saidu, PPPRA executive secretary, disclosed this in a statement issued in Abuja last Saturday.
He said that the state of infrastructure in the downstream of the Nigerian oil and gas sector largely was a reflection of profitability and proficiency of the market.
He added that the aim of the audit was to assess the state, adequacy and identify the infrastructure gap in the sector.
“ The PPPRA recognises that the state of infrastructure in the downstream requires constant assessment to ensure uninterrupted supply of products in addition to providing up to date data for operation in the sector.
“Oil and gas processing, storage and distribution facilities, jetties downstream and pipelines, retail outlets for oil and Liquified Petroleum Gas (LPG)  will be the focus of the survey.
“ The audit also aimed at assessing the impact of government policy and regulation on the sector’s operating environment and viability, with a view to addressing identified loopholes,” he said
According to him, the exercise, which is expected to commence in the second half of 2019, is a long awaited exercise by operators and other stakeholders.
He noted that the outcome of the exercise would contribute to policy formulation and impact investment decision-making by investors.
Saidu said that the management of the PPPRA would champion the exercise, noting that it was in furtherance of the reform programme of Mr President in the oil sector.
“All oil and gas depot owners, marketers, retail outlets and LPG plant owners are stakeholders in this exercise.
“The ultimate objective of which is to enhance the commercial viability of the sector and improve its level of attractiveness as investment capital destination of choice for would-be investors.
“We therefore wish to solicit the cooperation and support of all stakeholders in ensuring its success,” he said.

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NNPC, NOSDRA Move To Check Oil Spills

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The Nigerian National Petroleum Corporation (NNPC) and the National Oil Spill Detection and Response Agency (NOSDRA) say they would partner to check the incidences of oil spill across the country.
Group Managing Director of the NNPC, Malam Mele Kyari made this known when he received the Director-General of NOSDRA, Mr Idris Musa at the NNPC Towers in Abuja on Wednesday.
In a statement signed by Mr Ndu Ughamadu, the spokesman for the corporation, Kyari said that as a national oil company, the NNPC pipelines, flow stations and assets across the country were jointly owned by the federation.
He maintained that the corporation produces crude oil to maintain a balance sheet for the nation.
“We have taken a number of steps to stem oil spill by deploying technology in order to make sure that whenever there is an oil spill incidence, it is contained almost immediately.
“We contain the incidences of oil theft, pipeline vandalism and acts of saboteurs and we intend to bring it to the barest minimum,” he said.
Kyari noted that the NNPC operated both crude oil and petroleum products pipelines, adding that the corporation was collaborating with its partners to curb incidences of oil spill in its areas of operations.
He said the corporation would also forge closer ties with NOSDRA to proactively forestall oil spill in areas that were prone to incessant incidences.
Earlier, Musa said the agency was prepared to partner the NNPC in mitigating oil spill in all areas of its operations.
He added that the partnership would ensure a good operating environment for the operators and the communities.
He added that breaking of petroleum products pipelines did not provide food, water and good environment for the people.

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