Lonrho Plc Accelerates Expansion Plans at Luba Freeport

Lonrho Plc Accelerates Expansion Plans at Luba Freeport

07-14-2007

Lonrho Plc announces that the phase 1 development of the deepwater

quay at Luba Freeport ( "Freeport"), owned 63% by Lonrho Plc and 37%

by the Government of Equatorial Guinea, is progressing ahead of schedule

 and on completion will almost double the handling capacity of the

Freeport.

The development of a further 70 metres of the deepwater quay is being

built by Danish contractor E. Pihl & Son A.S., the Danish marine

infrastructure specialists, who expect the expansion to be completed and

operational by October 2007.

Additional 110 metre quay extension by Q2 `08 Lonrho has further agreed

 to immediately proceed with orders  for the long lead materials (piles and

structural items) for a further 110 metres deepwater quay  extension to fast

track the continued growth of the Freeport.

It is envisaged that this extension will commence in December 2007 and be completed

during the first 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 investment of more than US$30 million to develop it as the central logistics,

maintenance and support base for the rapidly expanding oil and gas sector in the Gulf of Guinea.

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 and accommodation facilities and a 10,000 square metre logistics development for Baker Hughes,

one of the world's largest oilfield service companies.

Companies now operating from the Freeport include Amerada Hess, Schlumberger and Baker Hughes.

NEW FACILITIES

A 60,000 square metre logistics facility is currently under construction for ExxonMobil and a 3,200 square metre

warehouse facility which is being built for MI 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 a residential based hotel with 220 rooms at the Freeport to accommodate the

increased demand from the oil and gas service industry.

Lonrho Hotels is also considering building a number of apartments at the Freeport 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 confident that the Luba Freeport is now fulfilling its potential as the regional hub for

the oil and gas industry in the Gulf of Guinea. It is clear that our growth estimates for the sector were conservative and we can accelerate the Freeport's

development to meet market demand. Luba is going from strength to strength."

"The Gulf of Guinea opportunities continue to grow with major new gas finds being announced last week strengthening Luba's geographical position in a

region which now produces more than half a million barrels of oil per day (ExxonMobil producing 250,000 bpd).  The US Government has announced

that it expects to source 25% of its annual oil requirements from the Gulf of Guinea within the next five years."