A Lagos High Court in Igbosere has dismissed an application by Global Resources Management Limited and LADOL Free Zone seeking to stay the judgment of the court delivered five months ago in a suit between it and Samsung Heavy Industries Nigeria Limited (SHIN) and its subsidiary SHI-MCI FZE.
Justice Abdul-Fata Lawal reaffirmed his earlier order restraining LADOL from interfering in the operations of Samsung Heavy Industries Nigeria Limited (SHI) and its subsidiary SHI-MCI FZE.
Justice Lawal refused LADOL’s application while delivering judgment in Suit No: LD/493CMW/2018.
The trial judge upheld Samsung’s rights under the sub-lease of the fabrication yard at the LADOL Free Zone.
The court also held that Samsung has the right to continue to move in and out of its yard freely with its employees, agents and service providers free from further unlawful interference by LADOL.
SHI had sued LADOL for allegedly abusing its position and regulatory powers as a free zone manager in clear conflict of interest with its personal business interest.
It was also accused of allegedly spreading deliberate and malicious falsehoods designed to unlawfully appropriate and take over Samsung’s fabrication yard.
LADOL denied the allegations.
Reacting to the verdict, Chief Operating Officer of SHIN, Mr. Frank Eijzu, said: “Samsung is pleased that the high court has once again ruled in its favour and against LADOL.
“The Judgment prevents LADOL from evicting Samsung from the yard meaning that it shall comply with its legal obligations to provide services to the yard and its Nigerian employees.”
Read Also; LADOL: Abuse of local content law by Nigerian companies must not be a barrier to foreign investment
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.”
It added: “We have always maintained that there were no lawful grounds to terminate the sub-lease agreement. This was part of a co-ordinated campaign by LADOL to unlawfully convert, appropriate and take control of the yard to the detriment of the Nigerian economy.
“The judgment by the High Court of Lagos grants Samsung possession of its fabrication and integration yard while the validity of the termination of the Sub-lease Agreement is being determined at the London Court of International Arbitration,” Ejizu explained.
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.
It said 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.
Leave a Reply