Lonrho Regulatory News (LONR)

11 Jul 2007 09:00

Lonrho PLC11 July 2007 11 July 2007 LONRHO Plc ("Lonrho" or the "Company") Accelerates expansion plans at Luba Freeport to meet increasing demand Lonrho (AIM: LONR) is pleased to announce that the phase 1 development of thedeepwater quay at Luba Freeport ( "Freeport"), owned 63% by Lonrho Plc and 37%by the Government of Equatorial Guinea, is progressing ahead of schedule and oncompletion will almost double the handling capacity of the Freeport. Thedevelopment of a further 70 metres of the deepwater quay is being built byDanish contractor E. Pihl & Son A.S., the Danish marine infrastructurespecialists, who expect the expansion to be completed and operational by October2007. Additional 110 metre quay extension by Q2 '08 Lonrho has further agreed to immediately proceed with orders for the long leadmaterials (piles and structural items) for a further 110 metres deepwater quayextension to fast track the continued growth of the Freeport. It is envisagedthat this extension will commence in December 2007 and be completed during thefirst half of 2008. This will take the deepwater quay facilities to 290 metres,allowing larger shipping vessels to utilise the Freeport's facilities. Since acquiring the Freeport last year, Lonrho has made a significant investmentof more than US$30 million to develop it as the central logistics, maintenanceand support base for the rapidly expanding oil and gas sector in the Gulf ofGuinea. Completed Facilities New facilities have been built and are now operational at the Freeport,including a 10,000 square metre specialist transit area, new catering andaccommodation facilities and a 10,000 square metre logistics development forBaker Hughes, one of the world's largest oilfield service companies. Companiesnow operating from the Freeport include Amerada Hess, Schlumberger and BakerHughes. New Facilities A 60,000 square metre logistics facility is currently under construction forExxonMobil and a 3,200 square metre warehouse facility which is being built forMI Swaco is expected to be completed by the end of September 2007. Lonrho Hotels Lonrho Hotels, a division of Lonrho, has agreed in principle to develop aresidential based hotel with 220 rooms at the Freeport to accommodate theincreased demand from the oil and gas service industry. Lonrho Hotels is also considering building a number of apartments at theFreeport to accommodate the requirements of long stay expatriate workers. David Lenigas, Chairman and CEO of Lonrho commented: "In partnership with the Government of Equatorial Guinea, Lonrho is confidentthat the Luba Freeport is now fulfilling its potential as the regional hub forthe oil and gas industry in the Gulf of Guinea. It is clear that our growthestimates for the sector were conservative and we can accelerate the Freeport'sdevelopment to meet market demand. Luba is going from strength to strength." "The Gulf of Guinea opportunities continue to grow with major new gas findsbeing announced last week strengthening Luba's geographical position in a regionwhich now produces more than half a million barrels of oil per day (ExxonMobilproducing 250,000 bpd). The US Government has announced that it expects tosource 25% of its annual oil requirements from the Gulf of Guinea within thenext five years." Enquiries: Lonrho +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 297 903Alisdair Haythornthwaite +44 (0) 20 7743 6676 +44 (0) 771 472 1379 Collins StewartSimon Atkinson +44 (0) 20 7523 8317 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 Brinkley Mining - www.brinkley-mining.com Luba Freeport - www.lubafreeport.com Fly540 - www.fly540.com Norse Air - www.norseair.co.za Swissta Holdings - www.swissta.com Countermine plc - www.countermine.com SA Independent Liner Services This information is provided by RNS The company news service from the London Stock Exchange