| Fri 26 Jan 2007, 10:52 | | LAF - Lonrho Africa - Luba Freeport Selects Danish |
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LAF
LOLAF
LAF - Lonrho Africa - Luba Freeport Selects Danish Group as Preferred Bidder for
Quay Extension Project
Lonrho Africa Plc
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
LUBA FREEPORT SELECTS DANISH GROUP AS PREFERRED BIDDER FOR QUAY EXTENSION
PROJECT
Lonrho is pleased to announce that Luba Freeport Ltd ("Luba"), Lonrho`s 63%
subsidiary, has selected Danish marine infrastructure specialists, E. Pihl
& Son A.S. ("Pihl") as Preferred Bidder for the port`s Phase 1 quay
extension work following a competitive tender. Luba and Pihl are in the
process of finalising the terms and conditions of the contract.
If appointed, Pihl will provide a complete turnkey solution for the creation of
the first 70m of quay at Luba, which will almost double the existing
handling capacity at the port. The Phase 1 expansion project is expected to
be completed by the end of the year. Pihl is a privately owned company with
an unparalleled global reputation for quality and excellence spanning back
to 1887. It has operated in Equatorial Guinea for 5 years and offers
significant cost efficiencies for Luba due to its availability of equipment
and skilled labour. Pihl and its subsidiaries have completed large-scale
global marine infrastructure assignments including ports, harbours, bridges
and tunnels, in countries such as Lebanon, Norway, Jamaica, Greenland,
Poland, Namibia and Equatorial Guinea.
David Lenigas, Joint Executive Chairman and Chief Executive of Lonrho,
commented:
"Business in the Gulf of Guinea is increasing with ship movements up 45% year on
year and we are therefore delighted that we have been able to select a
Preferred Bidder for the implementation of our Phase 1 expansion plans at
Luba according to schedule. Pihl is a first class international contractor
for marine facilities and we look forward to benefiting from both its
pedigree and expertise in Equatorial Guinea."
Over the course of the past twelve months Baker Hughes, one of Luba`s largest
clients, has completed a 10,000 square metre facility comprising
warehousing, offices, workshops and a bulking facility. Baker Hughes is
already looking to add an additional 5,000 square metres of open storage
adjacent to their present facility. Currently, Luba is improving
accommodation; catering and laundry facilities which are being provided at
its base camp for 28 expatriate Baker Hughes` personnel.
Luba is also making swift progress in the construction of a 60,000 square metre
logistics facility for Mobil Equatorial Guinea Inc. ("MEGI"), part of
ExxonMobil. Construction of this facility is expected to be completed by 30
June 2007. This will increase the usage of the site by MEGI, whose contract
took effect on 15 November 2006 for an initial period of nine years with
three, one-yearly extension options. The estimated value of the contract
amounts to more than US$35 million over the remaining initial period.
Within the next 12 months, Luba is expected to complete an additional 1,000
square metres of warehousing, locker and shower rooms for MI Fluid. The
warehouse will be used for the storage of palletised chemicals as MI
Fluid`s present warehouse is unable to cope with the increasing demand for
drilling chemicals in the Gulf of Guinea. MI Fluid will also build
additional tanks for the storage and distribution of bulk chemicals.
Schlumberger has also requested the construction of additional bulk storage pads
on their current facility at Luba. It intends to install two additional
bulking tanks for the pumping of chemicals across the quayside for
distribution throughout West Africa.
"The successful completion of Phase 1 remains our priority, the cost of which is
approximately US$10.3 million," said Mr. Lenigas. "The Netherlands
Development Finance Company ("FMO") is no longer engaged to provide debt
financing. Luba will instead source alternative project financing over
future phases of the development of the port`s facilities."
26 January 2006
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 26/01/2007 10:52:01 Produced by the JSE SENS Department.
