| Wed 5 Dec 2007, 17:17 | | LAF - Lonrho Plc - LONRHO to develop new 110mtr quay at Luba freeport to meet |
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LAF
LOLAF
LAF - Lonrho Plc - LONRHO to develop new 110mtr quay at Luba freeport to meet
rapidly growing demand
Lonrho Plc
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho" or "the Company")
LONRHO TO DEVELOP NEW 110mtr QUAY AT LUBA FREEPORT TO MEET RAPIDLY GROWING
DEMAND
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 +44 (0)7881 825 378
Chairman
Geoffrey White, Chief Executive +44 (0)7717 307 308
Officer
Emma Priestley, Executive +44 (0)7867 785 177
Director
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
5 December 2007
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 05/12/2007 17:17:01 Produced by the JSE SENS Department.
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