6th Sep 2006 16:00
Lonrho Africa PLC06 September 2006 FOR IMMEDIATE RELEASE LONRHO AFRICA PLC ("Lonrho Africa" or "the Company") MOBIL COMMITS TO luba freePOrt FACILITY Lonrho Africa is pleased to announce that Mobil Equatorial Guinea Inc. ("MEGI")and Luba Freeport Ltd ("Luba"), Lonrho Africa's 63% subsidiary, have agreed onterms to build a 60,000 square metre logistics facility at Luba in EquatorialGuinea. This world-class facility will be the new base for MEGI and underlines thecontinued growing importance of Luba to the West African oil and gas industry.The facility will include warehousing and office space, marine hose storage, anAPI (American Petroleum Industry) specification pipe-yard, inspection shed, washbay and storage area. Construction is expected to be completed by 30 June 2007when the contract will become effective for a period of seven years with anadditional three one-year extension options. The value of the contract amountsto more than US$30 million over the initial seven-year period. MEGI is part of ExxonMobil, one of the world's largest oil & gas producers.ExxonMobil conducts businesses in almost 200 countries and is the industryleader in refining and the supply of petroleum products under the Exxon, Mobiland Esso brands globally. They are a pacesetter for offshore exploration in theWest African region and have adopted leading-edge technology to increase theirproduction activities in the Gulf of Guinea. MEGI's relocation to Luba Freeportincreases their level of commitment to Luba as a regional hub for theirexpanding operations. "This agreement is a significant milestone in the ongoing transformation of LubaFreeport into a major regional hub for the oil and gas industry in the Gulf ofGuinea," said David Lenigas, Joint Chairman and CEO of Lonrho Africa. "We hopethat MEGI's relocation will have a multiplier effect and act as a catalyst forother leading oil and gas industry participants to review the location of theirbase of operations in West Africa." Luba Freeport benefits from naturally occurring deep water conditions able tohandle both oil field supply vessels and ocean-going ships. As part of theport's expansion, previously announced, Luba is planning a new terminal with upto 18m of draft, which will facilitate the servicing of the largest ocean-goingvessels. Current clients at Luba include: Amerada Hess, Baker Hughes, Marathon, LOTEG,Schlumberger, Nalco, SBM, Devon Energy, Petronas, Noble Energy and MI Swaco.Concurrent to new client facilities, plans are in place to significantlyincrease the operational capacity of the Freeport, providing improved services,facilities and logistics to all existing and future clients. MEGI's agreement follows Luba's recent appointment of the world's premier portfacilities development group, Jurong Primewide International ("Jurong"). Juronghas been mandated to provide master design and planning services for thesubstantial expansion of infrastructure and facilities of the Luba quayside and50 hectares of Freeport. In addition to a fully integrated, short-term expansionfeasibility study Jurong will provide long-term development plans for Luba'sexpansion. Following completion of the feasibility study, Jurong will commenceconstruction of the facilities through an Engineering, Planning and Construction(EPC) contract. For further information on Luba Freeport Ltd, please visit: www.lubafreeport.com About ExxonMobil in West Africa ExxonMobil has a substantial production base in West Africa with exploration anddevelopment 'upstream' activities in Equatorial Guinea, as well as in Angola,Cameroon, Chad, Niger, Nigeria, and the Republic of Congo. Specifically, MEGIenjoys a world-class acreage position in the high-potential deepwater provincesoff Equatorial Guinea and is the nation's largest oil producer, operating twoblocks (ExxonMobil interest, 71%), covering 1 million gross acres. Presently,total field production in Equatorial Guinea exceeds 200 thousand barrels per day(gross). -END- CONTACT DETAILS: Lonrho Africa Plc +44 (0)20 7016 5100David LenigasEmma Priestley Strand Partners Limited +44 (0)20 7409 3494Simon RaggettMatthew Chandler Cardew Group +44 (0)20 7930 0777Nadja VetterEden MendelEmma Consett NOTES TO EDITORS Lonrho Africa is in the process of re-establishing a significant presence on theAfrican Continent. Its investment and acquisition strategy, adopted followingthe appointment of David Lenigas as Chief Executive in December 2005, will focuson the natural resources, infrastructure, leisure and agribusiness sectors.Lonrho Africa has considerable experience across these industries in a widerange of countries. Earlier this year, the Company announced investments inBrinkley Mining Plc and Nare Diamonds Ltd. In May, Lonrho Africa announced its acquisition of 63% of the issued sharecapital of Luba Freeport in Equatorial Guinea. The port acts as a logisticscentre for the oil and gas industries in the Gulf of Guinea and services majoroil companies in the region. Its Tax Free status and central geographicallocation make it a unique choice for a West African regional hub. Lonrho Africahas agreed with the Government of Equatorial Guinea to maintain the overalldevelopment programme for the Port facilities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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