A Review of the Nigerian Energy Industry

Court restrains AGF, Samsung, Total Upstream from execution of Egina FPSO contract

25 May 2015, Lagos – A Federal High Court sitting in Lagos has restrained the Attorney General of the Federation, Samsung Heavy Industries Nigeria Limited and Total Upstream Nigeria Ltd, and their agents from taking any action to award the contract for the Floating Production Storage and Offloading Unit, FPSO, in the Egina Field within OML130, pending the determination of the substantive suit.

Samsung Heavy IndustriesOther defendants in the suit are National Petroleum Investment Management Services and Nigeria Content Development Monitoring Board.
The court also restrained the defendants and their agents from giving effect or implementing the award of the aforesaid Egina FPSO contract either by way of operating or executing same in any way whatsoever pending the determination of the substantive suit.

Trial judge, Justice Okon Abang, gave the orders in his ruling on the arguments of parties in the suit.
The court, meanwhile, dismissed application by Total Upstream Nigeria Ltd., for stay of proceedings in the matter.

Mr John Owubokiri, a lawyer and plaintiff in the case, had, through his counsel, Mr Olukayode Enitan, argued that the scope of Egina FPSO oil field which is expected to produce 200,000 barrels of crude oil per day as stated by Samsung Heavy Industries Nigeria Ltd is expected to create 50,000 jobs and is thus strategic to the future of the Nigerian economy.

The plaintiff, Owubokiri in the substantive suit, is asking the court to declare that the award of the contract to Samsung Heavy Industry Nigeria Limited for the engineering, procurement, construction and commissioning of the Egina FPSO is unlawful, tainted by irregularities in that NPIMS, CDMB and Total Upstream Nigeria ignored all extant laws, regulations, directives, and guidelines guiding such awards.

He also want the court to declare that the award of the contract to Samsung Heavy Industry Nigeria for the engineering, procurement, construction and commissioning of Egina FPSO contrary to extant laws, regulations, directives, guidelines and laid down procedure is irregular, null and void and ought to be set aside.

Meanwhile, the court adjourned till May 28, continuation of hearing in the suit.

 

 

 

– Vanguard

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