NIGERIA LNG BLOCKADE LIFTED.- Castreje&Co Abogados castrejeabogados According to a Nigeria LNG statement released today NLNG has agreed to pay the Nigerian Maritime Administration and Safety Agency (NIMASA), on an “under protest” basis, various levies which NIMASA claims are overdue statutory payments by NLNG. As a result of NLNG agreeing to make these payments, albeit under protest, NIMASA has agreed to lift the blockade of NLNG ships immediately. NLNG is working to resume operations as quickly as possible. NLNG stated the total amount involved is $140 million to cover arrears in these levies as claimed by NIMASA, having earlier made an initial payment of $20 million. In addition, NLNG has agreed to pay, “under protest”, the levies as they become due until a judicial ruling on whether these payments are justified can be obtained. NLNG stated the company has lost revenues of over $475 million. “We feel we have no other option than to now make these payments under protest,” said NLNG Managing Director, Babs Omotowa. He said, “In doing this, we have taken into account the overriding national interest; in particular to stem the huge financial and reputation loss the country has suffered as a reliable LNG supplier, a destination for foreign investment and a nation of the rule of law.” NLNG stated they believe that they have a very strong case to be exempt from the NIMASA levies under the terms of the NLNG Act and will continue with its substantive case in court to obtain a judicial determination of whether or not such levies are due to be paid. It is for this reason that the payments that NLNG is making will be made on an “under protest” basis. According to Mr Omotowa, “Our position has nothing to do with how much NLNG is being charged by a relevant agency but with the legality or otherwise of such a charge or levy, in order for us to ensure that all our payments are made within the ambit of what is lawful”. NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49%), Shell Gas BV (25.6%), Total LNG Nigeria Limited (15%), and Eni International (N.A,) N. V. S. a. r. l (10.4%).
Posted on: Mon, 15 Jul 2013 16:35:21 +0000