Termination of pilotage contract: Intels denies indebtedness to NPA

Following NPA termination of Intels Nigeria Limited boats pilotage monitoring and supervision agreement, the management of the leading integrated logistics and facilities services provider in the maritime and oil and gas logistics sectors of the economy, yesterday  said it is not indebted to the Nigerian Ports Authority (NPA), but rather NPA owes it more than $750 million.

The company, which issued a statement on Tuesday in response to the termination of its boats pilotage monitoring and supervision agreement by NPA, said while it is open to an amicable resolution of the contract dispute with NPA, it is willing to proceed in all appropriate directions to protect its interests and its 5,000 employees.

The statement reads: “With regard to the press report in Thisday Newspaper of Sunday 19th May, 2019 concerning the agency agreement between NPA and Intels, the latter states that it has not breached or violated the agreement with NPA.
“Intels further confirms the correctness of its actions, in line with the agreement signed on 24 August 2018, according to the terms and timing established therein, in compliance with the principle of reciprocity of rights and obligations thereby provided for.
“The same agreement supplements the original agreement and reinforced the understanding of the parties that the agency service was entrusted to Intels, in order to guarantee a repayment plan for the significant investments made.

“Intels reiterates that, overall, it is not in any way indebted to NPA, but it is instead a creditor of NPA for an amount exceeding US$ 750 million against the financing granted by Intels and associated entities to NPA over time.

“Intels hopes that the undergoing amicable procedure with NPA may result in clarifications between the parties and a return to normal operations, but it also reaffirms its willingness to proceed in all appropriate directions to protect its own interests, in line with the contractual agreement, and all valid receivable claims against NPA, for the protection of its corporate interests, its 5,000 Nigerian employees and shareholders and those who have been operating in the Country for over 40 years.”

Recall that NPA had in March terminated its boats pilotage monitoring and supervision agreement with Intels Nigeria Limited.

In a letter dated March 29, 2019, addressed to the Managing Director of Intels, NPA said the decision to revoke the contract was taken in line with Article 8 (C) of its agreement with Intels, dated February 11, 2011.
The letter signed by NPA’s Assistant General Manager, Legal Services, read in part, “We refer to the agreement dated 11th February, 2011 and 24th August, 2018 between the NPA and Intels Nigeria Limited for the monitoring and supervision of oil industry related activities in the compulsory pilotage districts of the authority (service boat operator).

“The NPA (the principal ) hereby serves on you Intels Nigeria Limited, (the Managing agent) notice of termination in line with article 8 (C) of its agreement with Intels, dated 11th February, 2011, which said notice shall expire three months from the date of this notice of termination.”

In a letter dated March 27, 2019, addressed to the Managing Director of NPA, Hadiza Bala-Usman, NPA’s Executive Director, Finance and Administration, Mohammed Bello-Koko, had accused Intels of non-compliance with the presidential directive and circular on implementation of Treasury Single Account (TSA) and Article 4.1 of the executed supplemental agreement by refusing to remit the sum of $145, 849,309.33 being outstanding service boat revenue generated from November 1, 2017 to October 31, 2018.