* Maritime security agency says NLNG owes $158 mln levies
(Reuters) – A Federal High Court has reiterated an order for the Nigerian Maritime Administration and Safety Agency (NIMASA) to end a blockade of Nigeria’s Liquefied and Natural Gas company (NLNG) ships.
Justice M.B. Idris rejected an application against the ruling from the Nigerian Maritime Administration and Safety Agency (NIMASA) and Global West, a security company contracted to enforce the blockade.
* Maritime security agency says NLNG owes $158 mln levies
(Reuters) – A Federal High Court has reiterated an order for the Nigerian Maritime Administration and Safety Agency (NIMASA) to end a blockade of Nigeria’s Liquefied and Natural Gas company (NLNG) ships.
Justice M.B. Idris rejected an application against the ruling from the Nigerian Maritime Administration and Safety Agency (NIMASA) and Global West, a security company contracted to enforce the blockade.
Since June 21 NIMASA has reportedly barred LNG cargoes from entering or leaving the loading bay at the Bonny terminal in the Niger Delta because it says NLNG is not paying a 3 percent levy, from which the NLNG argues it is exempt.
“The court has refused the application of the defendant and the order barring NIMASA and Global West from interfering in the operations of LNG stays,” a lawyer said.
It is unclear what difference the court ruling will make, since NIMASA and Global West ignored the last one issued in June. NIMASA wants $158 million in total, including back pay.
Security sources with knowledge of the matter say Global West, a private security company, is run by a former Niger Delta militant, Government Ekpumopolo, nicknamed “Tompolo”, although he is not officially on its board.
Spokesmen for NLNG and NIMASA both said they could not comment because the judge had ordered them not to pending further hearings. These included on a renewed application by NIMASA to maintain the blockade and on the levy dispute itself – on whether NLNG really should pay the taxes NIMASA is claiming or not.
LNG accounted for 9 percent of Nigeria’s exports in 2012, according to one economist, or $8.1 billion, so the blockade is costing Nigeria $22 million a day in gas exports.
NLNG declared force majeure – an inability is unable to fulfil its contractual obligations due to circumstances beyond its control – on gas exports on June 28 because of the blockade.
Since June 21, the Nigerian Maritime Administration and Safety Agency (NIMASA) has barred LNG cargoes from entering or leaving the loading bay at the Bonny terminal in the Niger Delta because it says NLNG is not paying a 3 percent levy, from which the NLNG argues it is exempt.
The parties were in court in Lagos last Friday to try to resolve the dispute over the lawfulness of the blockade and the levies, which NLNG spokesman Kudo Ereia-Eke had earlier said he hoped would be resolved.
The court adjourned the case until yesterday ( Tuesday).
The Nigerian National Petroleum Corporation (NNPC) owns 49 percent of NLNG with Shell holding 25.6 percent, Total 15 percent and Eni 10.4 percent.
LNG accounted for 9 percent of Nigeria’s exports in 2012, said economist Bismarck Rewane, CEO of Lagos-based consultancy Financial Derivatives, or roughly $8.1 billion a year, a quarter of Nigeria’s federal fiscal budget for 2013.
“That’s about $155 million a week, of which 51 percent belongs to the Nigerian government,” he said. “That is a lot of money to the Finance Ministry.”
NLNG declared force majeure on gas exports on June 28 because of the blockade.
Mr Ereia-Eke declined to give figures for NLNG losses, and finance ministry officials were not immediately available.
NIMASA spokesman Isichei Osamgbi said the agency was seeking cumulative levies of $158 million.
“Our business is not to cause any crisis to the gas sector. We just insist on our dues. Why shouldn’t they pay the levies that are applicable to anybody?” he said.
NLNG argues that the act that established it makes it exempt, but Mr Osamgbi said the exemptions expired after the first year of profit, following a 5-year holiday.
A shipping source said NIMASA already charges LNG tankers $600,000 per berth to load at the NLNG bay, four times higher than the average among the highest fees of any LNG port.
NLNG says a court order was issued on June 18 preventing NIMASA from blockading the port until a resolution was found, but the maritime agency denies that.
Buyers of Nigeria’s LNG include Spain’s Repsol, Italy’s Enel, Britain’s BG Group France’s GDF Suez and Portugal’s Galp.
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