• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 13 hours Science: Only correct if it fits the popular narrative
  • 6 hours Crazy Stories From Round The World
  • 7 mins EU has already lost the Trump vs. EU Trade War
  • 15 hours Iran Burning: Shock Gas Price Hike Triggers Violent Protests After Subsidy Cuts
  • 5 hours Impeachment Nonsense
  • 1 day Do The World's Energy Policies Make Sense?
  • 7 hours Everything You Need To Know About Trump
  • 1 day What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 2 days China's Renewables Boom Hits the Wall
  • 16 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 2 days Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 2 days Water, Trump, and Israel’s National Security
  • 1 day Who writes this stuff? "Crude Prices Swing Between Gains, Losses"

Breaking News:

Russia Plans To Boost Crude Oil Exports

Joao Peixe

Joao Peixe

Joao is a writer for Oilprice.com

More Info

Premium Content

Nigerian Company to Sue Total, Samsung

An indigenous Nigerian oil company is suing major foreign players for allegedly plotting to exclude the local company from a $3.8 billion floating production vessel that was intended to be a local component of the project.

Lagos Deep Offshore Logistics (LADOL) is taking Korea’s Samsung Heavy Industries, Total Upstream Nigeria Limited, the Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian Ministry of Petroleum Resources before a federal high court over the issue.

LADOL accuses the parties of plotting to keep it from engaging in the local component of the $3.8 billion Egina Floating Production Storage Offshore (FPSO) vessel.

Related article: Africa Energy Advisory

More specifically, LADOL claims that a significant proportion of the steel fabrication and the integration of the FPSO topsides were intended to be carried out at its yard in the LADOL Free Zone in Lagos.

The contract for the project to build the $3.8 floating oil platform was won jointly by Samsung Heavy Industries and LADOL, according to the latter.

The FPSO project is intended for Total’s $15 billion Egina deepwater development, offshore Nigeria. However, recent development may lead to cost overrun and delay in the completion of the project.

The Egina deep water development is located 130 kilometers offshore Nigeria, and was conceived by Total Upstream Nigeria Limited, in collaboration with the Nigeria National Petroleum Corporation (NNPC), and is expected to take off by the end of 2017.

The platform has a projected production capacity of 200,000 barrels per day and a 2.3-million-barrel storage capacity.

Related article: South Sudan not Ready for Oil Prime Time

According to LADOL, contract infringement could cost Nigeria $200 million earmarked for promoting the local content aspect of the Egina project, as well as over 50,000 jobs.

LADOL is seeking 19 reliefs against the parties, and calling on the court to make a declaration that the contract is subject to the Nigerian Oil and Gas Industry Content Development Act of 2010, among other things.   

“A declaration that the Egina FPSO Project contract was also awarded by Total to Samsung on the basis inter alia of Samsung’s representations and assurances to the Nigerian regulatory authorities that Samsung would build and operate training Facility in the LADOL Free Zone for the training and education of Nigerians,” LADOL noted.

By. Joao Peixe of Oilprice.com




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play