Jonathan orders $500m oil project moved from Lagos

The Nigeria's outgoing President Goodluck Jonathan has 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 Nationreports yesterday.

The project is a partnership between LADOL Integrated Logistics Enterprise and Samsung Heavy Industries, Korea.

The two companies are to build fabrication and integration yards for Egina Floating Production Storage and Offloading (FPSO) facility for the use of local and foreign-owned oil companies.

The multi-million dollar project is in phases, and billed to be completed in the next five years.

The project is said to have reached an “advanced stage” before Jonathan issued a directive that it should be relocated.

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).

Mohammed signed the letters on behalf of the NPA Managing Director, Sanusi Ado Bayero, who is believed to be a stakeholder in Intel, an oil and gas logistics firm in Rivers State– an allegation he has denied in newspaper advertorials.

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.