By Benjamin Chiou
LONDON (SHARECAST) – Lonrho Ports will be the sole developer and manager of a new oil logstics port in Western Ghana, Lonrho announced on Thursday.
Shares in Lonrho, the Africa-focused investment company, rose 3.33% to 15.50p at 14.45pm.
Lonrho Ports signed a memorandum of understanding with the Ghanaian government’s Minister of Transport concerning the new port which will be “designated as the strategic ‘one stop’ location for supporting the rapidly growing oil, gas and petrochemical industry in Western Ghana,” the firm said.
The project will last for 25 years with the option of a 25-year extension.
“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 Lonrho’s executive chairman David Lenigas.
“The oil industry in sub Saharan Africa has become a crucial component of global production and a strong driver of economic growth,” he said.