LADOL votes $350m for Egina FPSO project

LFZ LADOL FREE ZONE21 October 2013, Lagos – The Lagos Deep Offshore Logistics Base (LADOL) has earmarked $350 million for the execution of its work in the floating production, storage and offloading (FPSO) vessel for oil production from the Total’s operated Egina field.

LADOL is handling the project in joint venture (JV) partnership with Samsung Heavy Industries (SHI). Coincidentally Samsung was awarded the main contract scope which allows it to perform over 80 percent of the FPSO work scope that cannot be executed in Nigeria in home country Korea, which include the FPSO hull, over 20,000mt of fabrication, procurement and installation of major equipment.

LADOL was slated to carry out between 1,500mt and 3000mt worth of fabrication job for the FPSO but following the partnership between it and Samsung, which was consummated a few years ago, Samsung proposed to do 10,000mt fabrication job at LADOL Base in Lagos. The proposal attracted some criticisms bordering on capacity and expertise.

The Managing Director of LADOL, Dr Amy Jadesimi, told The Nation that Samsung is a world class company stressing the painstaking processes and due diligences that were carried out to ensure that the facility meets international standard before the joint was sealed.

She explained that the criticisms that trailed Samsung’s proposal were not constructive because those criticising the idea are those that don’t want change, those that want status quo to remain because they benefit from it to the detriment of the country and the industry.

She said LADOL is the only 100 per cent Nigerian logistics base owner in Nigeria and the only one to develop a facility from a zero value Greenfield Nigerian Ports Authority (NPA) site into a $500 million world-class base.

She also said that contrary to allegations of lack of capacity, expertise and non-approvals by government and regulatory agencies levelled against the company, LADOL has got all the necessary approvals from Nigerian Export and Processing Zones Authority (NEPZA), Nigerian Ports Authority.

Besides the series of approvals, she said LADOL had to sign nineteen separate agreements with Samsung over the three years with the active involvement of seven separate world-class Nigerian and International lawyers, financial advisors and consultants.

– Emeka Ugwuanyi, The Nation

About the Author