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LADOL Part Ways With SHI, Alleges Serial Contract Breaches By Korean-Based Ship Building Yard

The Lagos Deep Offshore Logistics (LADOL) has terminated its sublease contract agreement with Samsung Heavy Industries (SHI) following alleged “repeated uncautionable negative activities” and breaches of due processes by the multinational ship builders.

The foremost Nigerian indigenous oil and gas service provider based in Apapa, Lagos, was local content partner to SHI in the just concluded fabrication of multi billion dollars Egina oil rig project described as first of its kind in the sub Sahara Africa.

Consequently, LADOL has resorted to taking a court action against Samsung in a suit No FHC/L/CS/1459/2018 filled in Lagos, to put a seal on the protracted business deal turn soured.

The court action and other steps embarked upon by LADOL to end the relationship were contained in a release made to journalists by the Managing Director of LADOL, Dr. Amy Jadesimi, at the weekend.

According to the Managing Director of LADOL, Samsung’s untoward activities has been tolerated for the past four years in the country, but that LADOL has been patience in the interest of the nation and national duty, before resorting to the court action.

In the statement, Jadesimi noted that “as a responsible Nigerian company, LADOL has put public duty and national interest ahead of its private interest and concerns for sometime, with respect to the Egina FPSO project being the largest in the world” irrespective of Samsung’s alleged provocative activities.

Other issues raised against Samsung before the court action was taken against it by LADOL include:

·        Refusal by Samsung to abide by conditions of service for Nigerian staff and abuse of Nigerian workers.

·        Samsung’s violation procedures of the Nigerian customs services.

·        Violation of Nigerian Immigration procedures

·        Breaches of Nigerian content Development and monitoring Board regulations and

·        Refusal to remit statutory tariffs to the Federal Government of Nigeria despite several demands from the Nigerian Export Processing Zone Authority.

According to Dr. Jadesimi, Samsung’s activities in Nigeria has been fraught with mischief and reckless disregard for all stakeholders which include LADOL itself as its local content business partner; Nigerian regulators; Nigerian workers and the nation.

Sources said the Nigerian company had to wait for this long in taking action against SHI in order to avoid possible disruption of the Egina Floating Production Storage and Offloading (FPSO) project that is now concluded.

Other breaches of Nigerian and contract laws which Samsung had reportedly flouted persistently also include:

·        Persistent failure to comply with rules and regulations of the free zone.

·        ‘Blatant repudiation of major contractual terms in agreement duly signed with LADOL.

·        Concealing sums of money provided for in the Head Contract from LADOL, their local content partner.

·        Exclusion of local content partner from operations, thereby refusing to transfer technology and

·        Demand of huge unconscionable variations from their client (Total/NNPC Joint Venture) and by extension from Nigerian people.

LADOL also accused SHI-Nigeria of allegedly embarking on sponsored media attacks on notable government agencies, an action which recently which it said, badly painted Nigerian Government, its agencies and the entire business environment in the country as being “uncondusive to ease of doing business regimen in Nigeria”.

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