Lonrho to Develop New 110mtr Quay at Luba Freeport to Meet Rapidly Growing Demand

5 December 2007
Content from a Premium Partner
Lonrho (London)
press release

Lonrho (AIM: LONR), the expanding conglomerate with a structured portfolio of African investments, is pleased to announce that it has awarded a contract to E. Pihl & Son A.S. ("Pihl") for the construction of a new 110 metre quay at Luba Freeport ("Luba"). This expansion is to meet the growing demand for port facilities from the burgeoning oil and gas industry in the Gulf of Guinea.

Lonrho owns 63% of Luba through a joint venture agreement with the Government of Equatorial Guinea. Luba is the only deepwater freeport in the region and now accommodates the major oil producing and service industries for the Gulf of Guinea.

The agreement follows Pihl's successful completion earlier this month of a 70 metre quay extension at Luba, which doubled the port's handling capacity.

The new agreement will see Pihl complete the 110 metres of quay by mid 2008 for a contracted price of US$10.6m. Following a process of competitive tender, Pihl's offer provided the most significant cost and time efficiencies in the delivery of a modern, world-class facility suited to the needs of the oil & gas industry. The contract includes penalty clauses in relation to performance.

Pihl (www.pihl-as.dk ) is a global leader in the engineering and construction of port facilities. The company has completed large-scale marine infrastructure assignments such as harbours, bridges, tunnels and ports in the North Atlantic, Middle-East, Asia, Central America and Africa and has a reputation for high quality service and performance dating back to 1887. Pihl has a particularly strong track record In Equatorial Guinea having successfully completed eight projects in the country.

Since Lonrho's acquisition of Luba in May 2006, the rapid scale of expansion at Luba has seen the port develop into the most efficient hub for the offshore oil and gas industry in the region. The new agreement follows the recent completion at Luba of a significant 60,000 square metre logistics base for ExxonMobil, the world's largest petroleum producer. The new quay will provide additional access, larger handling capacity and faster vessel turn around to ExxonMobil and other port users such as MI Swaco, Baker Hughes, Schlumberger, SBM, and Lonrho's 51% owned container shipping line, SA Liners Limited.

David Lenigas, Lonrho's Chairman stated:

"We are extremely pleased to be developing Luba at such a rapid rate. Luba presently handles over 120 vessels per month and its throughput per metre of quay is well above world averages, with demand for Luba's services escalating beyond our original expectations. With the booming oil sector in the region, the provision of more quay space to manage future vessels is paramount. We expect the demand to continue to grow rapidly and have begun designing further expansion to immediately follow the completion of the new quay.

Luba adds significant value to Lonrho's portfolio of investments. We are confident that the port has firmly established its reputation as the premier oil and gas hub for the industry in the Gulf of Guinea. The continued development of the port provides Lonrho with the potential for strong future revenue streams."

ENQUIRIES

Lonrho Plc +44 (0)20 7016 5105

David Lenigas, Executive Chairman +44 (0)7881 825 378

Geoffrey White, Chief Executive Officer +44 (0)7717 307 308

Emma Priestley, Executive Director +44 (0)7867 785 177

Pelham PR

Charles Vivian +44 (0) 20 7743 6672

+44 (0) 7977 297903

Alisdair Haythornthwaite +44 (0) 20 7743 6676

+44 (0) 7714 721379

Collins Stewart Europe : NOMAD to Lonrho

Jonny Sloan/Hugh Field +44 (0) 20 7523 8350

NOTES TO EDITORS

About LONRHO:

Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company is listed on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services and natural resources. The Company has over 20,000 shareholders and substantial institutional backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy.

Since 2006, the Company has invested in or acquired control of:

  • Hotel Cardoso - www.hotelcardoso.co.mz
  • Lonrho Mining - www.lonrhomining.com
  • Luba Freeport - www.lubafreeport.com
  • Fly540 - www.fly540.com
  • Norse Air - www.norseair.co.za
  • Swissta Holdings - www.swissta.com
  • SA Independent Liner Services - www.saliners.com
  • Bytes and Pieces
  • Celsys Limited - www.celsys.co.zw
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