Eco Fuel FZE has accused Srimex of hijacking its Petroleum Storage Terminal at the Freeport of Monrovia.

According to Eco Fuel, it has invested about US$25 million in Foreign Direct Investment to build a much needed modern Petroleum Storage Terminal in Liberia which has now been reportedly hijacked by  Srimex Oil and Gas.

The facility has been built over the course of a year to the highest of international standards using the most modern of equipment and techniques. 

Liberian staff were accordingly trained to international standards, enabling them to use their skills in Liberia and other countries. They have been certified in terminal operations and firefighting systems with international accreditation. 

Even during the course of the first year partial operation the terminal has paid  more than a million United States Dollars in tax and royalties to the Liberian Government. 

The facility brings much needed foreign investment for the country, fuel storage for the petroleum industry and modern skills and jobs for Liberians. 

The facility was closed down for the last few months due to a land dispute over the ownership of the land the terminal is built upon. 

This dispute, still in the court and as yet not ruled upon, took a sudden turn prior to Christmas when the operators, the Liberian Petroleum Storage Company (LPSC) was said to have dispossessed of the terminal and has not been allowed back since that time. 

Srimex Oil and Gas with the full support of LPRC, the government storage company and authorizing body for the petroleum industry, have now taken over and are operating the storage facility.  This is despite a court order declaring that the site is not to be operated and both LPRC and Srimex being fully aware of this fact. 

Over the Christmas Holiday LPRC reportedly facilitated a ship, MT Nordic Lynx, to discharge fuel into the terminal being illegally Operated by Srimex Oil and Gas. A company that has no staff trained in the terminal’s safe operation, no fire-fighting staff and no operating license for the facility. 

Despite a court order stating that the terminal cannot be operated Srimex reportedly made modifications to the facility and loaded fuel into the tanks with the full knowledge of LPRC. 

The essence of Srimex’s suit is that it (Srimex) has the exclusive right to possess and use the land on which the Terminal was built in accordance with a lease agreement Srimex entered into with the NPA that holds title to the land.

Eco Fuel, in its response to the suit, acknowledges the NPA Lease between Srimex and NPA, but states that Srimex subsequently transferred the NPA Lease to Eco Fuel by way of an Assignment of Lease by Novation (Novation and Substitution Agreement) between Srimex and Eco Fuel, as well as the NPA and the Liberia Petroleum Refining Company (LPRC).  The NPA have filed an affidavit in response to the Srimex Suit, confirming the statement of Eco Fuel that Srimex assigned by novation all its rights and interest under the NPA lease to Eco Fuel.

Copies of the Novation Agreement have been provided to the court and were put in records of the suit by both Eco Fuel and the NPA.