Lonrho Regulatory News (LONR)

20 Sep 2007 09:45

Lonrho PLC20 September 2007 20th September 2007 LONRHO Plc ("Lonrho" or the "Company") Completes logistics facility at LUBA FREEPORT Lonrho (AIM:LONR), the conglomerate with a structured portfolio of Africaninvestments, is pleased to announce the completion of a new and comprehensivelogistics facility at Luba Freeport. The new facility has been designed andbuilt for Mobil Equatorial Guinea Inc., ("MEGI"), an affiliate of Exxon MobilCorporation, at Lonrho's Luba Freeport in Equatorial Guinea. The 'state of the art' 60,000 square metre facility comprises offices, marinehose storage, warehousing, inspection sheds, wash bays, storage areas and a pipeyard. The facility has been designed and built to American Petroleum Industry(API) specifications. Following a six month construction period, MEGI tookpossession of the property on September 12, with the exception of the pipe washbay which is currently being modified and anticipated to be completed before theend of September. Update on development plans Since Lonrho's involvement in Luba, (the only natural deepwater freeport in WestAfrica), in May 2006, there has been a rapid increase in building work andimprovement in facilities to accommodate the rise in new businesses which areopening as a result of the boom in the local oil industry, which is fastbecoming one of the world's leading oil producing regions. The inauguration ofMEGI's logistics base follows completion of new facilities for Baker Hughes andMI Swaco, and a new kitchen and dining hall to service upgraded accommodation atthe port. The development of Luba is ahead of schedule and under budget on completion of anew 70 metre quay extension, engineered by Danish group E. Pihl & Son A.S. ("Pihl"), a global leader in marine construction. The new quay will be completedand operational by October 2007, doubling the existing handling capacity of theport. Development of a further new 110 metre quay has been brought forward to meetdemand and will be completed in 2008 to service the growth in demand for portfacilities being driven by the burgeoning Gulf of Guinea oil industry. Long-leaditems such as steel sheet piles and anchors have already been placed on order sothat the development of this new quay can begin as soon as the 70 metre quay iscompleted. Current clients operating from Luba include Amerada Hess, Baker Hughes,Marathon, MI Swaco, LOTEG, Schlumberger, Nalco, SBM, and United Africa Lines(UAL)., Safmarine/Maersk and MEGI. David Lenigas, Lonrho's Chairman and CEO commented: "Today's announcement is another example that the Luba Freeport is fast becomingthe primary deepwater port servicing the oil industry in the Gulf of Guinea.With Amerada Hess already operating from Luba, MEGI's addition means that Lubanow services both of the major oil producers in Equatorial Guinea. As a resultof this, we are now seeing demand from sub-contractors within the oil and gasindustry to invest in operational property within the port which will continueto drive the development of Luba. "I am delighted with the speed of development of the project. It is clear thatthe potential we identified for the port was conservative. Luba is going fromstrength to strength. ENQUIRIES Lonrho Plc +44 (0) 20 7016 5105David Lenigas, Chief Executive +44 (0)7881 825 378Emma 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 EuropeHugh Field +44 (0) 20 7523 8350Jonny Sloan 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 (retained) • Nare Diamonds - www.narediamonds.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 This information is provided by RNS The company news service from the London Stock Exchange