Vessel building firm restates commitment to Nigerian market
The Managing Director, SHIN, Youg-Ho Jo, in a chart with The Guardian, noted that Samsung’s present experience is bitter and not encouraging to international investors, and will not be discouraged from doing business in Nigeria.
His assertion followed a misunderstanding between the Lagos Deep Offshore Logistics (Ladol), and Samsung, which had lingered for weeks, and attracted varied attention to the floating production and storage and offloading (FPSO) vessel.
The dispute has also shrouded final installation of the vessel that would ensure a 200-000 barrel daily oil production from the $16 billion Egina oil field, operated by Total E&P Nigeria.
Jo said: “We are not disappointed in Nigeria, and this does not stop us from pursuing further contracts in the country. We will still invest in Nigeria, we believe many more projects are coming, and we know that it will not turn sour like that of Ladol.
“The over $300 million investment in Nigeria is not only for Egina, we are hoping to get more projects.
Many foreign investors are now watching carefully because Samsung reputation is well known globally,” he added.
Jo also denied that Total had paid Samsung for the upgrade of the facilities, saying that Total did not make any investment in the yard, and its Managing Director, Nicolas Terraz, was misinterpreted in the allegations against the company by the lawmakers during a public hearing.
He said the Total boss in a letter dated, February 21, 2018, had clarified the issue to the Senate.
The letter, which was cited by The Guardian read in part: “This amount shall not be construed as an investment by the company in the development of SHI-MCI worksite, given that this development was to be undertaken by a joint venture.
And the entire investment in new fabrication yard will be financed in the ratio of equity and loan from local or international banks to 50 per cent and 50 per cent respectively, as contained in the Contractor’s Nigerian Content Plan.”
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