| Tue 25 Jul 2006, 14:55 | | Lonrho Africa Plc - Announcement |
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LAF
LOLAF
Lonrho Africa Plc - Announcement
Lonrho Africa Plc
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
PREMIER SINGAPORE CONSULTING & ENGINEERING GROUP TO PLAN AND DESIGN THE LUBA
FREEPORT IN WEST AFRICA
Lonrho Africa is pleased to announce that Luba Freeport Ltd (Luba), Lonrho
Africa"s 63% subsidiary, has appointed JURONG Primewide Pte Ltd ("JURONG"), a
member of JURONG International Holdings Pte Ltd, to plan and design the
expansion of its port facilities in Equatorial Guinea.
JURONG International is wholly-owned by JTC Corp, a statutory board that has
been responsible for shaping the industrial landscape of Singapore since 1968.
Based on extensive practical experience of planning, constructing and developing
port facilities, JURONG is able to offer fully integrated design and
construction consulting services.
Jurong Port is a fully-owned subsidiary of JTC Corporation and a sister company
of Jurong International. Jurong Port is a premier multi-purpose port for
containers, bulk and conventional cargo in Singapore and the region. Its
Container Terminal, set up in mid-2001, was voted the "Best Emerging Container
Terminal Operator - Asia" by the international maritime fraternity for four
consecutive years from 2003 to 2006.
JURONG has been mandated to provide master design and planning services for the
substantial expansion of infrastructure and facilities of the Luba quayside and
50 Hectares of Freeport. JURONG will provide long-term development plans for
Luba"s expansion in addition to a fully integrated, short-term expansion
feasibility study for immediate implementation. Following completion of the
feasibility study, JURONG will commence construction of the facilities through
an Engineering, Planning and Construction (EPC) contract. Luba"s expansion
plans will increase the operational capacity of the Freeport and will provide
improved services, facilities and logistics to all existing and future clients.
The port is being developed to service the growing needs of the burgeoning oil
industry in both Equatorial Guinea and in the surrounding Gulf of Guinea. In
addition to its Freeport status and strategic geographic location, Luba benefits
from naturally occurring deep water conditions and can handle both oil field
supply vessels and ocean-going ships as a result of the minimum 10m water depth
at the jetty. As part of the expansion however, Luba will push the jetty and
facilities out towards the sea to give up to 18m of draft which will facilitate
the servicing of the largest ocean-going vessels.
This vision will help to establish Luba as a regional hub for the West Coast of
Africa: Cargoes in transit can be stored indefinitely and then re-shipped when
necessary, without any duty being charged. Larger and costly ocean-going
vessels can make one stop to drop off their entire cargo at Luba rather than
making partial deliveries in numerous ports. Cargo is then stored safely until
it is delivered later to other regional destinations by smaller more economic
vessels.
"Luba Freeport is being established as a `One Stop Shop" for oil logistics in
one of the fastest growing, oil-producing areas in the world," said David
Lenigas, Joint Chairman and CEO, Lonrho Africa. "JURONG is the world leader in
the design, engineering, construction and operation of port facilities. With
the combination of our vision for the port and JURONG"s expertise, we believe
that, from shipping"s perspective, Luba can become to Africa what Singapore is
to Asia."
Luba has commenced discussions with a number of potential funding counterparties
to fund its expansion plans for the port. These are taking place concurrently
with the technical feasibility study to ensure that expansion plans are
implemented in the shortest possible time frame.
In May, Lonrho Africa announced its acquisition of 63% of the issued share
capital of Luba Freeport for US$2 million. The port has a reputation within the
West African region as an efficient and cost effective freeport. It acts as a
logistics centre for the oil and gas industries in the Gulf of Guinea and
services major oil companies in the region. Its Tax Free status and central
geographical location make it a unique choice for a West African regional hub.
Lonrho Africa has agreed with the EG Government to maintain the overall
development programme for the Port facilities.
Luba Freeport"s major contracted clients include: Amerada Hess, Mobil Equatorial
Guinea, Baker Hughes, Marathon, LOTEG, Schlumberger, Nalco, SBM, Chevron Texaco,
Devon Energy, Petronas, Noble Energy and MI Equatorial Guinea.
25 July 2006
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 25/07/2006 02:55:25 PM Produced by the JSE SENS Department
