By Adedapo Adesanya

The Nigerian Maritime Administration and Safety Agency (NIMASA) has shut down ShellPlux and TMDK Terminals, both located in the Ijegun-Egba area of Lagos for non-implementation of the International Ship and Port Facility Security (ISPS) Code.

The enforcement action followed persistent non-compliance by the facilities with the provisions of the ISPS Code, despite several formal warnings.

The move aligns with global best practices and is in accordance with Section 79(f) of the ISPS Code Implementation Regulations (2014), which mandates the closure of any facility that remains in violation for over three calendar months, the agency said.

Speaking on the development, the Director General of NIMASA, Mr Dayo Mobereola, emphasised the agency’s commitment to safeguarding Nigeria’s maritime domain.

“In wielding the big stick, we acted only as a last resort. Our primary goal is to enforce safety and security practices across Nigerian ports and jetties. At a time when we are collaborating with the United States Coast Guard to lift the conditions of entry on vessels from Nigeria, we cannot afford lapses that jeopardise our progress,” he said.

Mr Mobereola added that the facilities would be reopened once all compliance requirements are satisfactorily met, acknowledging their important role in service delivery and trade facilitation.

“Our Minister of Marine and Blue Economy, Adegboyega Oyetola, is committed to enhanced sustainable trade facilitation for the maritime sector in a safe and conducive environment,” he added.

The ISPS Code, an amendment to the SOLAS Convention, was developed by the International Maritime Organisation (IMO) to enhance maritime and port security, particularly for facilities engaged in international trade.

He reiterated that the agency will continue to ensure that infractors are punished, until there is adequate change in culture that will help drive the sector forward.

By Adedapo Adesanya

A Port Harcourt High Court has dismissed a N5.74 billion breach-of-contract suit filed by Macobarb International Limited against the Nigeria LNG (NLNG) Limited.

The judge, Justice Chinwendu Nwogu, ruled in favour of the gas giant, rejecting all claims by Macobarb in a judgment delivered on Wednesday in the case with suit number PHC/2013/CS/2022, centered on an alleged breach of terms in a contract awarded to Macobarb for access control works at the NLNG plant on Bonny Island, Rivers State.

Recall that Macobarb International Limited, an indigenous contractor, had dragged the NLNG to court claiming over N1Bn (later amended to N5.74 billion) for alleged breaches to a contract (B130142PPI, Access Control) in the NLNG plant area with three years duration.

Justice Nwogu had ruled that the NLNG did not breach its contract with the contractor and that the gas company did not unlawfully deny Macobarb payments.

The judge said work executed by Macobarb did not amount to ‘work done’ as stated in the contract terms except the NLNG approved it as so, and that the provision mandating the person recognized as contract holder nominated by the NLNG as the one to authorize any dealings with the contractor did not mean that he alone could act for the NLNG as relied upon by the contractor.

The judge ruled that the contract holder was a mere day-to-day overseer of the project, and that any official mandated by the NLNG can terminate the contract.

The judge also ruled that the contract did not provide for stand down payment and that the NLNG did not cause delays in the execution of the contract as claimed by the contractor.

The judge also ruled that the payment failures by the NLNG that the contractor claimed affected the contract did not amount to an offence or breach of the contract but that the contractor misused the loan he obtained from banks.

In the end, the judge ruled in favour of all the grounds submitted by the NLNG and none on the grounds by the contractor, and even tongue-lashed the contractor in most of his rulings.

Reacting to the ruling, Mr Shedrack Ogboru, the chief executive of Macobarb, decried the ruling and its ripple effect for indigenous contractors seeking justice against international oil companies (IOCs) in Nigerian courts.

Mr Ogboru said he felt he presented tight case to the court to show that the NLNG breached terms of payments and that the breaches caused slowdown of the execution of the contract, but regretted that the judge did not agree with any of his arguments.

According to him, many indigenous contractors have died as a result of injustices in the hands of the oil majors, noting that it was only in abroad do communities and local contractors get some form of justice, never in Nigeria.

“My case is presented 100 per cent, the NLNG’s case is zero; but surprisingly, the NLNG has rather been upheld, and Macobarb denied. I pity indigenous contractors in Nigerian courts. We are doomed,” he quipped.

By Adedapo Adesanya

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Wednesday in Abuja, kicked off a two-day performance review session with companies currently holding gas distribution licences.

A statement by the regulator said the review was in compliance with the provisions of the Petroleum Industry Act (PIA), which mandates it to ensure and monitor performance parameters of the industry and the quality of service provided by licensed operators.

According to NMDPRA, the review focused on regulatory compliance, operational efficiency and Health, Safety, Environment, and Compliance (HSE&C) standards of the licensed gas distribution activities.

It reiterated that it would continue to work towards enabling proper gas utilisation in the country to meet domestic demands and boost the nation’s economy.

In January, as a way of increasing gas utilisation and expansion in the country, the NMDPRA awarded 10 Gas Distribution Licences (GDLs) to six companies, including a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited.

The six beneficiary companies include the NNPC Gas Marketing Company, Shell Nigeria Gas Limited, NIPCO Plc, Central Horizon Gas Company, Falcon Corporation Ltd, and AXXELA.

The licenses issued under the Petroleum Industry Act were to help unlock opportunities in power generation, clean cooking, CNG mobility, and energy parks.

The licenses issued covered a cumulative gas distribution capacity of approximately 1.5 billion standard cubic feet per day with over 1,200km of gas distribution pipeline network as well as over 500 customer stations.