President Jonathan Orders $500 Million Oil Project Moved From Lagos To Bayelsa

Barely 2 weeks to the official handover to a new government, President Goodluck Jonathan has reportedly directed that a $500 Million oil and gas investment project be relocated from LADOL Free Trade Zone (FTZ) in Lagos to Agga in Bayelsa State, The Nation reports. The project is a partnership between LADOL Integrated Logistics Enterprise and Samsung Heavy Industries, Korea. The multi-million dollar project is in phases, and billed to be completed in the next five years.

The directive, contained in two letters dated April 27, was signed by Mr A.B Mohammed, a general manager with the Nigerian Ports Authority (NPA).
The letters read:

“Pleased be informed that Mr President has vide PRES/99/MT/2/22 of April 20 approved the FPSO project be relocated to Agga in Bayelsa State when the facilities to handle such operations are developed. 

In addition, the project can be conveniently located at any designated oil and gas terminal. Please be informed that Mr President has approved, henceforth, all oil and gas related cargoes must be handled only  in the designated terminals in Onne, Warri and Calabar Ports. 

In view of this, vessels coming to Nigeria with oil and gas related cargoes, excluding petroleum products, are advised to first go to the appropriate concessioned terminals to be cleared by Customs and other relevant authorities, terminal operators and shipping firms.”

The Managing Director, LADOL Integrated Logistics Enterprise, Dr Amy Jayesinmi, said the timing of the letters was wrong and the directive was ill-conceived, and capable of destroying the gains made by the partners in the project.

“We got the two letters the same day: a day after the appointment of the new MD of NPA. I want to make it clear that we (LADOL) do not have problems with NPA because they are using our facility. 

“NPA has an office in LADOL Free Trade Zone. NPA had severally said LADOL is the largest private investor in its facility. By the end of 2017, LADOL would have invested $500million in NPA facility. Technically, it is not appropriate for the project to be relocated to Bayelsa, the President’s home state.’’