Lonrho to develop new oil logistics port in Ghana (5595M)
August 18 2011 - 2:00AM
UK Regulatory
TIDMLONR
RNS Number : 5595M
Lonrho PLC
18 August 2011
18 August 2011
Lonrho Plc
("the Company")
Lonrho to develop a new oil logistics port in Ghana
Lonrho Plc is pleased to announce that its wholly owned
subsidiary, Lonrho Ports Ltd, has signed a Memorandum of
Understanding with the Government of Ghana, represented by the
Minister of Transport, to be the sole developer and manager for a
new oil logistics port in Western Ghana to service the growing
demands of the offshore oil industry in Ghana.
The proposed new port will be located on a 2,000 acre site and
will be designated as the strategic 'one stop' location for
supporting the rapidly growing oil, gas and petrochemical industry
in Western Ghana. The first phase of the development will be 200
acres and will include an oil logistics port to provide
international standard, efficient logistics for offshore oil
companies as they increase production from Ghana.
The project has an initial concession term of 25 years renewable
for a further 25 years and it is envisaged that the project will be
a similar operation to Lonrho's successful Luba Freeport that
handles all the oil industry requirements in Equatorial Guinea.
Many of the clients for the new project will be the same as those
at Luba Freeport and the new port in Ghana will become the centre
of the oil industry activity for Ghana.
Under the terms of the MOU Lonrho Ports has been granted the
sole right, for a period of twelve months, to undertake an
environmental impact study, wave and bathometric surveys and to
design and optimize the project. Thereafter, subject to the
viability of the project, Lonrho has the sole right to develop and
manage the free port.
Located in the Western Region of Ghana, the new port will be
strategically located close to the Jubilee oil field, substantially
improving the current logistics for servicing the offshore
rigs.
The project will bring direct economic benefits to the Western
Region creating new employment opportunities in the region,
supporting local companies and will be a stimulus for commercial
growth.
David Lenigas, Executive Chairman of Lonrho, commented:
"Ghana is one of the fastest growing economies in Africa and has
already started commercial daily oil production from offshore
fields, and production is forecast to increase substantially over
the next five years. An international standard, highly efficient,
well located, oil port in the Western Region is important to
provide the required infrastructure to support this growing
industry. Lonrho is very experienced in building oil service ports
and is delighted to be developing this strategically important
project in conjunction with the Government of Ghana."
The oil industry in sub Saharan Africa has become a crucial
component of global production and a strong driver of economic
growth. The infrastructure to support the industry needs to be
developed to meet the production forecasts of the producers across
the Continent.
LONRHO ENQUIRIES
Lonrho Plc +44 (0) 20 7016 5105
David Lenigas
Geoffrey White
David Armstrong
Panmure Gordon +44 (0) 20 7459 3600
Tim Linacre
Dominic Morley
Adam Pollock
Hannah Woodley
Pelham Bell Pottinger +44 (0) 20 7861 3232
Charles Vivian
James MacFarlane
This information is provided by RNS
The company news service from the London Stock Exchange
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