The Lagos Deep Offshore Logistics (LADOL) has said the $4 billion Egina project remains a test case for the efficacy of the Nigerian Local Content Law of the federal government.
Counsel to LADOL, Professor Fidelis Oditah, said Wednesday last week after the hearing of LADOL’s case with Samsung/Total over the project, that the case at hand was an attempt for the first time, 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.
He told journalists: “The contention of my client LADOL is that having been used by Samsung as the local content vehicle to win this major contract of $4billion, it is not open to Samsung to say that our client is no longer the local content partner. What is even more perplexing in a case like this is that the contract allocated the sum of $214 million dollars for the construction of facilities at LADOL. This 214 million dollars is part of what Samsung is trying to put in the pocket and sabotage the Nigerian economy by doing so; we say that the court should not allow them to do so.
“The Court will rule on this by June 3, 2014. It is however instructive to note that what the Nigerian Content Monitoring Board set out to do in its frame work document is that where there is any major oil and gas project in Nigeria, that major oil and gas project should leave a legacy facility for the benefit of Nigerians and to create job for Nigerians. It is in that spirit that this Egina FPSO contract made the provision for $214 million for construction of the fabrication yard and integration of facility at LADOL, Oditah insisted.
At the resumed hearing of the suit by LADOL against Samsung and Total over the Egina project, on Wednesday, the offshore logistics provider insisted on its legal rights to undertake the local content aspect of the job.
The contract awarded to Samsung Heavy Industry and LADOL by Total for the integration of a Floating Production Storage and Offloading (FPSO) platform otherwise known as Egina project to be sited at LADOL base in Lagos, became a matter for litigation following alleged moves by Samsung to scheme the indigenous firm out of the lucrative job.
Professor Oditah (SAN), had earlier sought 19 reliefs for his client against Samsung and other defendants before Justice ChukwujekweAneke, of the Federal High Court, Ikoyi, Lagos, asking for a declaration that the contract awarded by Total to Samsung on or about 15 March 2013 is subject to the Nigerian Oil and Gas Industry Content Development Act 2010.
In his submission at the hearing Wednesday, Oditah noted that since the Nigerian Content Act 2010 was enacted for the benefit of all Nigerians, his client being a Nigerian entity has the right to sue for local content breaches, where the relevant government agency fails to do so.
Oditah was responding to earlier submission by Counsel to the First Defendant (Total), Chief WoleOlanipekun (SAN), that LADOL being a ‘contractual beneficiary’ in the contentious project lacked the locus standi to sue for alleged local content breaches.
