Renew Samsung group licence as we investigate breaches at FTZ, FG tells LADOL
As part of the first steps to return of normalcy at the Lagos Deep Offshore Logistics Base (LADOL) and its local content partner Samsung Heavy Industries (SHI-MCI), the Nigerian Export Processing Zones Authority (NEPZA), has vide a memo, directed LADOL to immediately renew the Free Trade Zone (FTZ) operating of the Korean company.
In the memo signed by the Managing Director of NEPZA, Mr. Emmanuel Jime, government said it has already set up a committee to investigate alleged breach of Nigerian laws and lack of respect shown to Nigerian government officials, by SHI-MCI.
Whereas NEPZA maintained that the probe is to find a lasting solution and resolve the differences between LADOL and Samsung, it would be recalled that the imbroglio has led to the current dormant state of Egina FPSO which is lying waste at Egina oil field because of the inability of LADOL and SHI to end their rift and complete the hooking of the platform on the seabed to begin operations.
Business Hilights gathered that the industrial rift bordering payment defaults is delaying the planned resumption of 200,000bpd offshore production capacity of the Egina FPSO owned by Total E&P valued at over $16bn.
Industry pundits say government and Total are losing fortunes because of the delayed production at the platform especially now global oil price is salutary.
NEPZA in the letter to LADOL wrote as follows:
“Kindly be informed that a committee has been constituted by the authority to investigate the various alleged infractions purportedly committed by Samsung Heavy Industries and SHI-MCI FZE in LADOL Free Trade Zone spanning over a period of time.”
“In accordance with section (20)(a) part 5 of the free zone regulation 2004, which provides as follows, ‘the authority/zone management may appoint one or more competent persons as inspectors, to investigate the affairs of any free zone enterprise and report to the authority in such form and within such time as it may direct. “Such appointment may be made on the application of the owners or of the free zone enterprise or by the authority acting unilaterally or by any other person provided the authority is satisfied that good reason has been shown or circumstance arisen for requiring the investigation.”
“In the light of the above provision, the committee has been specifically mandated to examine the allegations stated in your letter dated 30th August 2018, numbered 1-7 and submit its findings within five days for further necessary action.
“Without prejudice to the final outcome of the committee findings, you are hereby directed to renew the operating license of SHI-MCI FZE in LADOL Free Trade Zone Enterprise for the period under review 2018/2019 pursuant to the delegated powers provided under S.(41) of the LADOL Free Zone Regulations 2016.”
The NEPZA letter ended with an appeal saying, “Apropos to aforementioned, you are kindly requested to avail the free zone enterprise unhindered access to its designated business premises and facilities as well as accord the enterprise all the privileges and guarantees as contemplated under the free zone laws, guidelines and regulations. The above directive is for your prompt compliance.”
