Samsung Heavy Industries Nigeria Limited (SHIN) says it did not receive $214 million from Total for the construction of a fabrication yard at Lagos Deep Offshore Logistics (LADOL) Island.
In a letter sent by its representatives to TheCable Petrobarometer, the Korean company said the payments made to SHIN were part of the Egina floating production storage offloading (FPSO) contract price.
Samsung also claimed that it was awarded the contract as a Nigerian company, adding that LADOL is merely a shareholder of Samsung Heavy Industries Mega Construction and Integration Free-Zone (SHI MCI FZE) partnership.
TheCable had earlier reported that there is an ongoing arbitration case in a London court over the costs allegedly incurred by SHIN during the construction of the Egina FPSO.
Samsung was awarded a contract in 2010 to construct an FPSO for Nigeria’s Egina deepwater oilfield which has oil deposits in excess of 550 million barrels.
“Total did not pay Samsung $214 million for the construction of the fabrication yard,” the letter read.
“Total has consistently stated (including at the February 2018 Senate Inquiry) that it has made no investment in the fabrication yard, and that all payments to SHIN under the Egina FPSO Contract were part of the lump sum contract price.
“LADOL was not “forced” to reduce its interest in SHI-MCI FZE, but voluntarily entered into a revised Joint Venture agreement with SHIN after failing to make the agreed capital contributions relevant to its shareholding under the original Joint Venture agreement.”
The letter confirms the existence of an arbitration, which it describes as “confidential”, adding that information about the payments made by Total to Samsung “in connection with their dispute” is also “commercially confidential”.
Most of the facts and allegations reported by TheCable Petrobarometer were from the certified court papers and correspondences originated by Samsung.
In the past, all attempts by TheCable to seek clarifications from Samsung had been futile, with calls and texts to 08033436889, said to be the number of the head of communications, going unanswered.
The crisis of confidence between Samsung and LADOL, which partnered to build the $3.3 billion Egina vessel, has remained unsolved after several court cases and promises by the federal government to help make peace.