Group threaten civil action against SHI Over Egina FPSO

Not fazed by the move between the Lagos Deep Offshore Logistics, LADOL, and Samsung Heavy Industry (SHI), to reach a settlement and worried by what it considers an attempt to abandon local content and the defense of national interest over the dispute on Egina FPSO, a rights group has insisted on government to go ahead with the probe and sanction of SHI, an action it describes as “very timely and important step towards protecting Nigeria from further exploitation by SHI”.

In a statement issued in Abuja today, Wednesday, and jointly signed by Moses Siloko Siasia, Chairman of Nigerian Young Professionals Forum, NYPF, and Hamzat Lawal, Chief Executive of Connected Development, CODE, the both group also demands that the federal government, as a matter of urgent national importance, commences a holistic investigation into the contract award for Egina FSPO in which SHI is alleged to have bribed senior government officials to enable the company to secure the contract, not minding the fact that SHI has violated all known local content laws.

The group says that if the federal government fails to initiate action with regards to the probe of SHI, it would have no option but to mobilize youths from all over Nigeria to the Presidential Villa for a civil protest. The statement reads in part;

“Our position is that the Egina FPSO contract awarded to Samsung Heavy Industries (SHI) is fraudulent, ab initio and in all its ramifications. Secondly, in executing this contract, SHI has consistently violated the Local content laws and, accordingly, further jeopardized the already delicate unemployment situation in Nigeria. For these reasons and more, we demand that the Federal government should commence a comprehensive probe of Samsung Heavy Industries. If after one week we don’t see any action from the federal government to bring SHI to justice, we shall mobilize all youth groups across Nigeria to occupy the Presidential Villa until something is done”

Although, Samsung Heavy industries currently operates the Fabrications and Integration Yard (SHI-MCI Yard) in LADOL’s free zone which is used to integrate the Egina Floating Production Storage Offloading (FPSO) vessel which has sailed over 200.000 barrels per day Egina oilfield, the company Samsung Heavy Industries (SHI)has come under severe criticisms from different interest groups for fraudulently winning the contract, in the first place, and for not executing the terms of the contract in total compliance with the local content laws and violation of several other essential contract terms.

According to the group, the recent action by their local content partner LADOL has open a new vista into the entire contract saga demanding that the Federal Government must now step in to reevaluate the process of contract award, the gross violations by SHI and put in motion executive and legislative action necessary to stop SHI from further violation of existing laws.

The group stated that it believes that this government led by President Muhammed Buhari will take appropriate actions, noting that “no responsible government, as in the case of most oil producing countries, will see such outcry from citizens and keep mute”

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