Court Bars LADOL from Ejecting Samsung from Lagos Free Zone

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Akinwale Akintunde

Justice Abdulfattah Molawale Lawal of the Lagos High Court has bared Global Resources Management Limited and Lagos Deep Offshore Logistics (LADOL) from ejecting Samsung Heavy Industries (SHIN) Nigeria Limited and its subsidiary, SHI-MCI FZE, from the LADOL free zone in Lagos, pending the delivery of the judgment to the substantive suit on January 25, 2019.

The judge in ruling also granted an interlocutory injunction restraining LADOL from further unlawful interference with Samsung’s use of its fabrication and integration yard within the LADOL Free Zone Area.
The court also ordered that the parties in the suit should co-exist peacefully pending its judgment on January 25, 2019.
A statement issued by the spokesman of SHIN and Chief Operating Officer (COO) of the company, Mr. Frank Ejizu, disclosed that, “The High Court in Lagos granted an interlocutory injunction order restraining LADOL from evicting Samsung from Samsung’s fabrication and integration yard within the LADOL Free Zone.

“The Court ordered that Samsung be free to move in and out of its yard with its employees, agents and service providers. Furthermore, the court has directed LADOL to provide all services such as water and power supply to Samsung. This crucial court order allows Samsung to continue its operations unhindered while legal proceedings are ongoing. This is an important decision in favour of Samsung and Nigeria at a critical time.

It will allow Samsung to continue to provide services vital to the completion of the Egina project, Nigerian oil production and the Nigerian economy. This decision of the High Court in Lagos is binding on LADOL and prevents it from unlawfully evicting Samsung from the fabrication yard or interfering with Samsung’s proprietary rights,” “Samsung is pleased that the High Court has ruled in its favour. It has restrained LADOL from evicting Samsung from the yard and required that it complies with its legal obligations to provide services to the yard and its Nigerian employees while proceedings are ongoing,” Ejizu explained.

“We have always maintained that there were no lawful grounds to terminate the sub-lease agreement. This is part of a co-ordinated campaign by LADOL to unlawfully convert, appropriate and take control of the yard to the detriment of the Nigerian economy.
“What is particularly sad is that this campaign of harassment by LADOL will frighten away foreign investment into the free-zone, as foreign businesses. Overall, this will have a negative impact on the Nigerian economy,” he alleged.”
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.

When fully operational, the platform will boost Nigeria’s oil production capability by 200,000 barrels a day and will make a significant contribution to the Nigerian economy. The joint venture – SHIN-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.

In a separate matter addressed by the judge, SHIN confirmed that there was no electrified fence, and the barricade, which had been installed alongside the quay wall for safety and security purpose, has been removed in strict adherence to the Courts.

In his ruling in the Suit Number LD/493CM/2018 between Samsung Heavy Industries Nigeria Limited and SHI-MCI FZE as claimants, and Global Resource Management Limited and LADOL Integrated Logistics Free Zone Enterprise as defendants, the presiding judge, Justice Abdulfattah Molawale