posted by www.equatorialguineaonline.com
London- and Johannesburg-listed Lonrho said on Thursday its wholly owned subsidiary Lonrho Ports would be the sole developer and manager for a new oil logistics port in Western Ghana.
In signing a memorandum of understanding with the government of Ghana, the company would now play a key role in servicing the growing demands of the offshore oil, gas and petrochemicals industry through the proposed new port, located on a 2 000 acre site.
Executive chairperson David Lenigas said an international standard, highly efficient, well located, oil port in the western region was important to provide the required infrastructure to support this growing industry.
“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.
“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,” he added.
The first phase of the development covers a site of 200 acres and would include an oil logistics port to provide international standard, efficient logistics for offshore oil companies as they increase production from Ghana, the company said.
The new port is located close to the Jubilee oil field, substantially improving the current logistics for servicing the offshore rigs.
The project has an initial concession term of 25 years, which is renewable for a further 25 years.
Lonrho said it hoped the project would be a similar operation to its Luba Freeport, in Equatorial Guinea.
“Many of the clients for the new project will be the same as those at the Luba Freeport. The new port in Ghana will become the centre of the oil industry activity for Ghana,” the company said in a statement.
For twelve months, Lonrho Ports will undertake an environmental impact study, wave and bathometric surveys, and design and optimise the project.
Subject to the viability of the project, Lonrho has the sole right to develop and manage the free port.
The project will bring direct economic benefits to the region, create new employment opportunities, support local companies and be a stimulus for commercial growth, Lonrho said.