Medserv plc announced on 31 January 2007 that it has entered into a Memorandum of Understanding (MoU), subject to contract and satisfactory documentation, with Misurata Free Zone (MFZ), an authority established by Libyan GPC decree 32/2006 involved in the ownership and operation of the Misurata Free Trade Zone in Libya.
The principal terms of the MoU stipulate that:
(i) Medserv and MFZ shall incorporate a joint stock company to be called Medserv Misurata Free Zone Company (MMFZC), the principal object of which shall be the operation of a logistic and supply base at the Misurata Free Zone Port and in the Misurata Free Zone for the purpose of serving the oil and gas industry both offshore and onshore Libya;
(ii) Medserv shall hold the majority of the issued share capital and shall have control of MMFZC;
(iii) Medserv shall be entitled to appoint three members and MFZ shall be entitled to appoint two members on the Board of Directors of MMFZC;
(iv) MFZ shall, subject to a cost and for a duration of 30 years, provide MMFZC with certain facilities and services, including a quay, warehouse and storage area;
(v) Pursuant to the MoU and to a management agreement still to be entered into, Medserv shall provide MMFZC management services, inter alia, for the overall management of MMFZC’s affairs, the upkeep of best industry practices, selection of appropriate staff, technical and software assistance as well as marketing and promotion of MMFZC’s business.