Again, court restrains LADOL from interference in Samsung’s operations
Justice Abdul-Fata Lawal of the Lagos High Court, Igbosere has again ordered Global Resources Management Limited and LADOL to allow Samsung Heavy Industries Nigeria Limited (SHI) and its subsidiary SHI-MCI FZE to continue to move in and out of its yard freely with its employees.
The judge while delivering judgment in a suit marked LD/493CMW/2018, dismissed LADOL application for a stay of execution of the judgement that restrained it (LADOL) from evicting SHI and it’s privies.
The court had on January 31, 2019 restrained LADOL from interfering in SHI and it’s privies movements.
SHI had dragged LADOL to court for allegedly abusing its monopolistic position and regulatory powers as a free zone manager in clear conflict of interest with its personal business interest.
It was also accused of spreading deliberate and malicious falsehoods designed to unlawfully appropriate and take over Samsung’s fabrication yard.
The court therefore held that Samsung has rights under the sub-lease of the fabrication yard at the LADOL free zone.
According to SHI, the judgment will allow Samsung to continue to provide services vital to the Egina project and Nigerian oil production. The Nigerian treasury will receive a substantial revenue from the production and storage of 200,000 barrels of crude oil a day from the Egina oilfield.
“The judgment also signals that Nigeria is a safe place for foreign businesses to invest money and resource safe in the knowledge that their rights will be protected. It is binding on LADOL and prevents it from unlawfully evicting Samsung from the fabrication yard or interfering with Samsung’s proprietary rights under its sub-lease,” the company said.
The Chief Operating Officer of SHIN, Mr. Frank Eijzu, stated that the ship building giant was pleased with the judgement.
Samsung originally won the tender for the construction of the Floating Production, Storage and Offloading (FPSO) platform for the exploration of the Egina oilfield 130 kilometres off Nigeria’s coastline.
When fully operational, the platform will boost Nigeria’s oil production capability by 200,000 barrels per day and will make a significant contribution to the Nigerian economy.
The joint venture (SHI-MCI) entered a sub-lease agreement with Global Resources Management Limited (LADOL’s affiliate) in order for SHI-MCI FZE to construct and develop a world class Fabrication and Integration yard and quay wall for the execution of the local content elements of the Egina FPSO Project.
Since its arrival in Nigeria in 2011, SHIN has created more than 6,000 jobs for Nigerians and has offered promotion to managerial positions for its Nigerian employees. It has trained some of Nigeria’s most skilled welders and has established a Technology training Centre. As part of its corporate social responsibility endeavours, it has also worked with Vision Care to provide free-cataract surgery to over 350 patients over the last 3-years. This decision is the right decision for Nigeria.
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