Chevron, Total court cases: N1trn local funds threatened

Over N1 trillion local content investments in Nigeria have remained in limbo, two years after they were conceived, New Telegraph has learnt. These investments were delayed over court cases, which began in 2013 on major oil assets’ transactions by two major international oil companies (IOCs) – Chevron and Total. The Federal Government had earlier made known its aspiration to get a boost for the N1 trillion local content investments in the country, but data available to this newspaper revealed that losses have continued to mount over the oil blocks’ sale and investments delay.

While the case involving Brittania- U Nigeria Limited and Chevron/SEPLAT Petroleum and others over Chevron’s sale of Oil Mining Leases (OMLs) 52, 53 and 55 is before the Supreme Court, Total/Samsung’s are before a Judge in a case between them and Lagos Deep Offshore Logistics (LADOL). Investments of about $1 billion had been planned over the Chevron oil blocks’ sale, while Total/Samsung and Ladol are locking horns over a $3.8 billion Egina oil platform project. Although, stakeholders refused to comment on the issue “to avoid contempt,” but a source at the Nigerian Content development and Monitoring board (NCDMB) told New Telegraph that the delay had serious implications on the Nigerian Content investments’ aspiration.

“These court cases, no doubt, have effects on local contents investments,” he said, adding: “We only hope that the court adjudicate on the matters and dispense justice fast so that the investments that are on hold as a result of the cases can be made.” The Supreme Court had, on Tuesday, February 24, 2015, admonished parties in the case before it involving Brittania-U Nigeria Limited and Chevron/ SEPLAT Petroleum and others, over Chevron’s sale of Oil Mining Leases (OMLs) 52, 53 and 55 – to realise that the apex court is now fully in charge of the appeal. The presiding justice on the panel, who sat on the appeal, Justice Fabiyi, reminded counsel that it was their duties, being very senior members of the bar, to advise their clients on the need to respect the authority of the court now that the appeal is ripe for hearing and not do anything that may overreach the case.

Meanwhile, the lingering disagreement between Lagos Deep Offshore Logistics (LADOL) and Samsung/Total over a $3.8 billion Egina oil platform project has taken a fresh twist, as the plaintiff-LADOL, accused Samsung Heavy Industries (SHI), of breaching an earlier ruling by Justice Chukwu Jeku Aneke, of the Federal High Court, Ikoyi, Lagos, that parties maintain status quo pending the determination of the suite. Counsel to LADOL, Professor Fidelis Odita, had told the court that despite the court order of January 24, 2014, Samsung, had on February 27th and 28th 2014, made presentations to the Nigerian National Petroleum Corporation (NNPC), of its plans to replace LADOL with another company as its third party local content partner for the project.

The contract awarded to Samsung Heavy Industry and LADOL by Total for the integration of a Floating Production Storage and Offloading (FPSO) platform otherwise known as Egina project to be cited at LADOL base in Lagos, assumed litigation following alleged schemes by Samsung to exclude the indigenous firm from the juicy job. Nigerian company, Brittania- U Nigeria Limited, had instituted the case in December 2013 over the divestment of Chevron interest in Oil Mining Leases (OMLs) 52, 53 and 55.