Lonrho Completes Logistics Facility at Luba Freeport

20 September 2007
Content from a Premium Partner
Lonrho (London)
press release

Lonrho (AIM:LONR), the conglomerate with a structured portfolio of African investments, is pleased to announce the completion of a new and comprehensive logistics facility at Luba Freeport. The new facility has been designed and built for Mobil Equatorial Guinea Inc., (“MEGI”), an affiliate of Exxon Mobil Corporation, at Lonrho’s Luba Freeport in Equatorial Guinea.

The ‘state of the art’ 60,000 square metre facility comprises offices, marine hose storage, warehousing, inspection sheds, wash bays, storage areas and a pipe yard. The facility has been designed and built to American Petroleum Industry (API) specifications. Following a six month construction period, MEGI took possession of the property on September 12, with the exception of the pipe wash bay which is currently being modified and anticipated to be completed before the end of September.

Update on development plans

Since Lonrho’s involvement in Luba, (the only natural deepwater freeport in West Africa), in May 2006, there has been a rapid increase in building work and improvement in facilities to accommodate the rise in new businesses which are opening as a result of the boom in the local oil industry, which is fast becoming one of the world’s leading oil producing regions. The inauguration of MEGI’s logistics base follows completion of new facilities for Baker Hughes and MI Swaco, and a new kitchen and dining hall to service upgraded accommodation at the port.

The development of Luba is ahead of schedule and under budget on completion of a new 70 metre quay extension, engineered by Danish group E. Pihl & Son A.S. (“Pihl”), a global leader in marine construction. The new quay will be completed and operational by October 2007, doubling the existing handling capacity of the port.

Development of a further new 110 metre quay has been brought forward to meet demand and will be completed in 2008 to service the growth in demand for port facilities being driven by the burgeoning Gulf of Guinea oil industry. Long-lead items such as steel sheet piles and anchors have already been placed on order so that the development of this new quay can begin as soon as the 70 metre quay is completed.

Current clients operating from Luba include Amerada Hess, Baker Hughes, Marathon, MI Swaco, LOTEG, Schlumberger, Nalco, SBM, and United Africa Lines (UAL)., Safmarine/Maersk and MEGI.

David Lenigas, Lonrho’s Chairman and CEO commented:

“Today’s announcement is another example that the Luba Freeport is fast becoming the primary deepwater port servicing the oil industry in the Gulf of Guinea. With Amerada Hess already operating from Luba, MEGI’s addition means that Luba now services both of the major oil producers in Equatorial Guinea. As a result of this, we are now seeing demand from sub-contractors within the oil and gas industry to invest in operational property within the port which will continue to drive the development of Luba.

“I am delighted with the speed of development of the project. It is clear that the potential we identified for the port was conservative. Luba is going from strength to strength.

ENQUIRIES

  • Lonrho Plc +44 (0) 20 7016 5105
  • David Lenigas, Chief Executive +44 (0)7881 825 378
  • 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 Hugh Field +44 (0) 20 7523 8350 Jonny Sloan

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 (retained)
  • Nare Diamonds - www.narediamonds.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
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