| Thu 18 Aug 2011, 8:01 | | LAF - Lonrho Plc - Lonrho to develop a new oil logistics port in Ghana |
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LAF
LOLAF
LAF - Lonrho Plc - Lonrho to develop a new oil logistics port in Ghana
Lonrho Plc
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF ISIN number: GB0002568813)
("Lonrho" or "the Company")
LONRHO TO DEVELOP A NEW OIL LOGISTICS PORT IN GHANA
Lonrho Plc is pleased to announce that its wholly owned subsidiary, Lonrho
Ports Ltd, has signed a Memorandum of Understanding with the Government of
Ghana, represented by the Minister of Transport, to be the sole developer
and manager for a new oil logistics port in Western Ghana to service the
growing demands of the offshore oil industry in Ghana.
The proposed new port will be located on a 2,000 acre site and will be
designated as the strategic `one stop` location for supporting the rapidly
growing oil, gas and petrochemical industry in Western Ghana. The first
phase of the development will be 200 acres and will include an oil logistics
port to provide international standard, efficient logistics for offshore oil
companies as they increase production from Ghana.
The project has an initial concession term of 25 years renewable for a
further 25 years and it is envisaged that the project will be a similar
operation to Lonrho`s successful Luba Freeport that handles all the oil
industry requirements in Equatorial Guinea. Many of the clients for the new
project will be the same as those at Luba Freeport and the new port in Ghana
will become the centre of the oil industry activity for Ghana.
Under the terms of the MOU Lonrho Ports has been granted the sole right, for
a period of twelve months, to undertake an environmental impact study, wave
and bathometric surveys and to design and optimize the project. Thereafter,
subject to the viability of the project, Lonrho has the sole right to
develop and manage the free port.
Located in the Western Region of Ghana, the new port will be strategically
located close to the Jubilee oil field, substantially improving the current
logistics for servicing the offshore rigs.
The project will bring direct economic benefits to the Western Region
creating new employment opportunities in the region, supporting local
companies and will be a stimulus for commercial growth.
David Lenigas, Executive Chairman of Lonrho, commented:
"Ghana is one of the fastest growing economies in Africa and has already
started commercial daily oil production from offshore fields, and production
is forecast to increase substantially over the next five years. An
international standard, highly efficient, well located, oil port in the
Western Region is important to provide the required infrastructure to
support this growing industry. Lonrho is very experienced in building oil
service ports and is delighted to be developing this strategically important
project in conjunction with the Government of Ghana."
The oil industry in sub Saharan Africa has become a crucial component of
global production and a strong driver of economic growth. The infrastructure
to support the industry needs to be developed to meet the production
forecasts of the producers across the Continent.
Enquiries
Lonrho Plc +44 (0) 20 7016 5105
David Lenigas
Geoffrey White
David Armstrong
Panmure Gordon +44 (0) 20 7459 3600
Tim Linacre
Dominic Morley
Adam Pollock
Hannah Woodley
Pelham Bell Pottinger +44 (0) 20 7861 3232
Charles Vivian
James MacFarlane
South African sponsor
Java Capital
18 August 2011
Date: 18/08/2011 08:01:10 Produced by the JSE SENS Department.
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