5th Dec 2007 08:00
Lonrho PLC05 December 2007 5 December 2007 LONRHO PLC ("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 ofAfrican 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 LubaFreeport ("Luba"). This expansion is to meet the growing demand for portfacilities 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 ofEquatorial Guinea. Luba is the only deepwater freeport in the region and nowaccommodates the major oil producing and service industries for the Gulf ofGuinea. The agreement follows Pihl's successful completion earlier this month of a 70metre 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 fora contracted price of US$10.6m. Following a process of competitive tender,Pihl's offer provided the most significant cost and time efficiencies in thedelivery of a modern, world-class facility suited to the needs of the oil & gasindustry. The contract includes penalty clauses in relation to performance. Pihl ( www.pihl-as.dk ) is a global leader in the engineering and constructionof port facilities. The company has completed large-scale marine infrastructureassignments such as harbours, bridges, tunnels and ports in the North Atlantic,Middle-East, Asia, Central America and Africa and has a reputation for highquality service and performance dating back to 1887. Pihl has a particularlystrong track record In Equatorial Guinea having successfully completed eightprojects in the country. Since Lonrho's acquisition of Luba in May 2006, the rapid scale of expansion atLuba has seen the port develop into the most efficient hub for the offshore oiland gas industry in the region. The new agreement follows the recent completionat Luba of a significant 60,000 square metre logistics base for ExxonMobil, theworld's largest petroleum producer. The new quay will provide additional access,larger handling capacity and faster vessel turn around to ExxonMobil and otherport 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. Lubapresently handles over 120 vessels per month and its throughput per metre ofquay is well above world averages, with demand for Luba's services escalatingbeyond our original expectations. With the booming oil sector in the region, theprovision of more quay space to manage future vessels is paramount. We expectthe demand to continue to grow rapidly and have begun designing furtherexpansion to immediately follow the completion of the new quay. Luba adds significant value to Lonrho's portfolio of investments. We areconfident that the port has firmly established its reputation as the premier oiland gas hub for the industry in the Gulf of Guinea. The continued development ofthe port provides Lonrho with the potential for strong future revenue streams." ENQUIRIESLonrho Plc +44 (0)20 7016 5105David Lenigas, Executive Chairman +44 (0)7881 825 378Geoffrey White, Chief Executive Officer +44 (0)7717 307 308Emma Priestley, Executive Director +44 (0)7867 785 177 Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297903Alisdair Haythornthwaite +44 (0) 20 7743 6676 +44 (0) 7714 721379 Collins Stewart Europe : NOMAD to LonrhoJonny Sloan/Hugh Field +44 (0) 20 7523 8350 NOTES TO EDITORS About LONRHO: Lonrho Plc is an expanding conglomerate that is rapidly growing a successfulbusiness throughout Africa. The Company is listed on the London AIM stockexchange (LONR). Lonrho is strategically focused on the development of businessopportunities in infrastructure, transportation, support services and naturalresources. The Company has over 20,000 shareholders and substantialinstitutional backing to support its mandate to build a profitable business thatplays 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 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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