Court Orders LADOL to Grant Samsung Unrestricted Access to Fabrication Yar

A Lagos State High Court, yesterday, granted Samsung Heavy
Industries Nigeria Limited, SHIN, access to its fabrication and
integration yard been managed by LADOL Nigeria Ltd.

Samsung and its subsidiary SHI-MCI FZE had dragged Global
Resources Management Limited and LADOL before the court over a
breach of contract.

In his judgment, Justice Lawal restrained LADOL from further
unlawful interference with Samsung’s use of its fabrication and
integration yard in the LADOL Zone or interfering with Samsung’s
proprietary rights.

The court’s judgment grants global shipbuilding giant “the right
to freely move in and out of its yard with its employees, agents
and service providers.”

The court also held that LADOL shall continue to provide all
services such as water and power supply to Samsung.

The judgment by the court grants Samsung access to the disputed
yard while the validity of the termination of the Sub-lease
Agreement is being determined at the London Court of International
Arbitration.

Commenting on the judgment, the Chief Operating Officer of
SHI-MCI, Mr. Frank Eijzu, said: “Samsung is pleased that the High
Court has 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.”

Samsung originally won the tender for the construction of the
floating production, storage and offloading platform for the
exploration of the Egina oil-field 130km off Nigeria’s
coastline.

The joint venture – SHI-MCI-FZE, which is owned 70 per cent by
Samsung and 30 per cent by LADOL’s affiliate 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.

The global shipbuilding giant has accused LADOL of abusing its
monopolistic position and regulatory powers as a zone manager which
it claimed is a clear conflict of interest with its personal
business interest.