by Jamie Ashcroft

African conglomerate Lonrho (LON:LONR) has unveiled plans to build a new oil logistics port in Ghana, near Tullow Oil’s (LON:TLW) deepwater Jubilee field.

The new port, expected to span 2,000 acres, will meet the growing demands of the oil industry. The new port will substantially improve logistics for servicing the offshore rigs at the Jubilee field, as well as the other oil and gas operations in the area, Lonrho said.

The company has the sole right to develop and manage the port. It has an initial 25 year concession, which can be renewed for a further 25 years.

"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,” said chairman David Lenigas.

“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 expects that the new project will be a similar operation to its successful Luba Freeport in Equatorial Guinea, which also handles oil industry requirements. Indeed Lonrho said that many of the clients for the new project will be the same as those at Luba. It also believes that the new port will become the centre of the oil industry activity for Ghana.

In the first twelve months, to design and optimise the project, Lonrho will carry out an environmental impact study, as well as wave and bathometric surveys.

The port will be located on a 2,000 acre site and it will be designated as the strategic 'one stop' location for the rapidly growing oil, gas and petrochemical industry.

Initially the first phase of the development will be 200 acres and it will include an oil logistics port to provide international standard, efficient logistics for offshore oil companies as they increase production from Ghana.

Lonrho added that the project will bring direct economic benefits to the Western Region of Ghana, by creating new employment opportunities in the region, supporting local companies and stimulating commercial growth.