Lagos Deep Offshore Logistics (LADOL) Group is willing to settle with Samsung Heavy Industries (SHI) over ownership of the $300 million integration and fabrication yard at the Lagos Free Trade Zone (FTZ), only on its terms.

Counsel to LADOL and its free zone management, Prof. Fidelis Oditah, said this while addressing newsmen in Lagos yesterday.

He noted the three aspects to the dispute: “The first is the ownership of SHI MCI FZE, which is a joint venture between LADOL and Samsung formed to perform the Egina Floating Production Storage and Offloading (FPSO) EPC contract between Samsung and Total Upstream Nigeria Limited.

The second aspect is SHI MCI FZE’s sub-lease agreement with a LADOL affiliate, Global Resources Management Limited (GRML).

The third is SHI MCI’s operating licence as a free zone enterprise within the LADOL free zone.

“We are very happy to work with SHI, not on its own terms but ours.”

But SHI had already issued a notice of contempt proceedings against certain directors of the LADOL zone management, saying its operating licence was not renewed and consequently it was unable to access the LADOL free zone.

The publication of the contempt proceedings followed a publication to the effect that the court had restrained LADOL zone management from violating SHI MCI FZE’s operating licence.

Oditah said: “To correct a few errors and bring all up to date with what is happening in this regard; first, there is no court order restraining the free zone management from doing anything.

The temporary restraining order granted by the court on July 31, 2018 was discharged by the court on August 14, 2018.

“Second, even if, contrary to the true position, there is such a restraining order, LADOL zone management has not violated SHI MCI FZE’s operating licence.”

A source at SHI, who craved anonymity, insisted that the company spent the past five years investing over $300 million to build an integration and fabrication yard in LADOL free zone.

However, LADOL said: “We would like to clarify that Total Upstream’s contract with Samsung Heavy Industries Nigeria Limited (SHIN) is a lump sum contract for the engineering, procurement, supply, construction and commissioning of a Floating Production, Storage and Offloading Unit.