LADOL battles NPA over revocation of oil logistics zone

By Samson Echenim

Leading indigenous oil and gas logistics provider, Lagos Deep Offshore Logistics Base (LADOL) has dragged the Nigerian Ports Authority (NPA) to a federal high court in Lagos over revocation by the authority, of 121 hectares of land leased to LADOL in an agreement with the port authority for the purpose of rendering oil logistics services at Tarkwa Bay in Lagos State.

LADOL and another company involved in the lease agreement, Global Resources Management Ltd (GRML) are seeking the court’s order and declaration that the NPA’s revocation of the lease agreement is unconstitutional, illegal, wrongful, null and void.

NPA had reportedly revoked its land lease agreement with LADOL at Tarkwa Bay over alleged violation of the terms of the contract.

It was gathered that the NPA had first leased a designated space to the LADOL, who invited others, some of which the NPA has allegedly gone ahead to do direct leasing to.

LADOL had reportedly subleased 11.24 hectares of land to Samsung Heavy Industries Nigeria Limited (SHIN) from the total 121 hectares leased to it at outrageous amount, and without approval from the NPA.

Defendants in the suit no. FHC/L/CS/2217/19 in which LADOL and GRML sought to void NPA’s revocation include the NPA, SHIN, the Nigerian Export Processing Zones Authority (NEPZA), Oil and Gas Export Free Zone Authority and SHI-MCI Free Zone Enterprise.

LADOL and GRML are praying the court for other reliefs which include the following:

“A declaration that the purported lease of 11.2426 hectares of land at Tarkwa Bay to the 2nd Defendant (SamSung) by the 1st Defendant (NPA) as set out in the 1st Defendant‘s letter dated 14th November 2019 entitled “Offer Of Lease Of Land At Tarkwa Bay Near Light House Beach” Reference Number HQ/GM/L&AA/0P/L.1/488 and accepted by the 2nd Defendant via its letter dated 15th November 2019 is illegal, null and void; a declaration that having regard to the 1st defendant’s letter Reference Number HQ/GM/PP&D OP G19/16 entitled “Approval for Sublease” dated 12th March 2014 and written to the 1st plaintiff, and other facts which have transpired amongst the Plaintiffs and the 1st, 2nd and 5th defendants, the 1st Plaintiff has not breached the lease agreement between it and the 1st Defendant by executing a sublease with the 5th defendant; and an order setting aside the purported direct lease of the land measuring 11.2426 hectares lying and situate at Tarkwa Bay Near Light House Beach granted to the 2nd defendant by the 1st Defendant via the 1st Defendant‘s letter dated 14th November 2019 Reference Number HQ/GM/L&AA/OP/L.1/488 and accepted by the 2nd Defendant via its letter dated 15th November 2019.

Other prayers include “an order of perpetual injuction restraining the 1st defendant from taking any steps or acting in furtherance of any steps to revoke, terminate, cancel. suspend. alter, amend or abrogate the 1st Plaintiff‘s leasehold interest over all that piece or parcel of land lying and situate at Tarkwa Bay. without complying with the agreement of the parties and without the prior approval of the President of the Federal Republic of Nigeria.”