Court orders Samsung to remove barricade Around Ladol Facility

A Lagos High Court at Tafawa Balewa Square (TBS) has ordered Samsung Heavy Industries (SHI) of South Korea to remove the barricade and the electric fence it erected around the facility of Lagos Deep Offshore Logistics (LADOL) within seven days.

Following a contractual dispute with LADOL, Samsung had on November 27, 2018, allegedly blocked three entrance gates to the LADOL fabrication and integration yard with blocks and crane.

The defendants told the court that Samsung Heavy Industries, on November 27, blocked three entrance gates to the LADOL fabrication and integration yard, using several dozens of 1m thick 32 ton blocks – piled three feet high, while the remaining access gate was blocked with a crane.

It said the perimeter fence around the yard now displays signage saying: “Danger/1100v/High voltage/Gas Area/Explosion Hazard/Keep off.”

According to it, port users interpreted the signage to indicate that Samsung has actually electrified the fence.

Justice Abdulfattah Lawal directed LADOL to continue to supply electricity and water to its tenant (Samsung) and not to evict it pending when judgment will be delivered on the substantive suit on January 25, 2019.

The judge had earlier refused to grant Samsung an interim injunction to challenge the termination of the lease agreement it had with Ladol.

Samsung and Ladol went into partnership as main contractor and local content partners respectively for the procurement, construction and commissioning of the $3.3 billion Floating Production Storage Offloading (FPSO) for the Egina deep water oil field, operated by Total, on behalf of itself and partners.

Part of the terms of the contract, as set out by the Nigerian Content Development Monitoring Board (NCDMB), was the upgrading of LADOL’s fabrication yard and quay, a requirement targeted at providing and enhancing local content.