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Presidency orders relocation of $500m port project to Bayelsa

Nigerian Ports Authority (NPA) has directed the management of LADOL Integrated Logistics to relocate its ongoing $500 million fabrication and integrated yards project in Takwa Bay within Apapa pilotage area in Lagos State to Aggey, Bayelsa State.

This, according to the NPA, is a “presidential order”.

However, the company’s management described the directive as “shocking’’ and out of tone with the agreement it entered into with its technical partners and the federal government.

The one paragraph letter was dated April 27, 2015, and signed by NPA’s General Manager (Capital Project), A.R. Mohammed, on behalf of the Managing Director.

It was titled: “Re: Joint Venture Partnership with Samsung Heavy Industries for the USD$500 Million development of fabrication and integration yards for EGINA and Future Projects”.

The letter read: “Please, be informed that Mr President has via PRESS/S9/MT/212 of April 20, 2015 approved that the FPSO (Floating Production Storage & Offloading) project can be located at Agge, Bayelsa State when the facilities to handle such operations are developed.

In addition, the project can be conveniently located at any dedicated Oil and Gas Terminal”.

Meanwhile, the President, according to NPA, has approved that henceforth; all oil and gas related cargoes must be handled only at the designated terminals in Onne, Warri and Calabar ports.

The directives signed on behalf of NPA Managing Director by General Manager (M&O), A.A. Goje, said: “In view of this, vessels coming to Nigeria with oil & gas related cargo excluding petroleum products are advised to first go to the appropriate NPA concessioned terminals to be cleared by customs and other relevant authorities, terminal operators, shipping lines among others”.

The directive also advised owners of such vessels to pay necessary dues/charges and obtain releases “before proceeding to locations for final discharge, including those meant for LADOL.

Reacting to the development, yesterday, the Managing Director of LADOL, Dr. Amy Jadesimi said the company was shocked by the development.

She explained that it would send wrong signals to private investors and foreign technical partners, pointing out that a lot of resources have been deployed to put the facilities in place.

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