LADOL terminates agreement with foreign partner over disagreement in FPSO Contract

Dr. Amy Jadesimi, MD LADOL
Logistics giant, LADOL, has terminated its agreement with its foreign partner, Samsung Heavy Industries (SHI) in respect of the Egina Floating Production Storage Offloading (FPSO) in Lagos waters.
Indications are that LADOL is alleging contractual and ethical breaches against the foreign partner.

The indigenous logistics company was reported to have accused the Korean company of “derailing its activities over a number of years.”

LADOL was said to have consistently accused SHI of engaging in “unacceptable violations of Nigerian laws and regulations, in what can be described as connivance with Nigerian officials.”

According to the report “LADOL also accused SHI of undercutting it by withholding crucial information on their joint operations, in addition to flagrant disregard for the Nigerian workers and industry regulators.

“LADOL, according to its Managing Director, Dr. Amy Jadesimi, had refrained from taking action against SHI until now, as it weighed the national interest and avoided any action that could have disrupted the multi-billion dollar Egina FSPO project, which has now been concluded.”

The report had it that LADOL has already filed a legal action against SHI in the Federal High Court.
However, SHI denied the allegation that it had violated the Nigerian content law.

SHI, according to an official, has also filed a court action challenging LADOL for refusing to renew its operating licence, according to the report by THISDAY.