Nigeria and Angola Oil industry more attractive than the rest of Africa—New report

water rigNigeria and Angola present attractive growth and operational expansion opportunities for manufacturers in the offshore oil and gas paints and coatings market, according to a report by Frost & Sullivan, a South African-based growth partnership company.

With raw material availability and local manufacturing capabilities catalysing production and supply lines, the two countries are rapidly emerging as the African hub for the offshore oil and gas paints and coatings market, the report said.

The report, entitled, “Analysis of the Offshore Oil & Gas Paints and Coatings Market in Nigeria and Angola,” found that the market earned revenues of $675.1 million in 2014 and estimated this to reach $1.13 billion in 2019.

The report, which covered offshore oil and gas facilities, dry docks and fabrication yards, show Nigerian and Angolan offshore oil and gas paints and coatings markets would grow at a compound annual growth rate of 9.6 per cent and 12.3 per cent respectively until 2019.

The company said local production in Nigeria supplied 30 per cent to 40 per cent of the local demand, leaving the remainder supplied through imports, while in Angola, only 6 per cent of offshore oil and gas paints and coatings are manufactured locally.

It said the distribution of local brands supported by sales of international brands would ensure long-term growth in the Nigerian and Angolan markets.

 The total offshore oil and gas paints and coatings market in Nigeria was estimated at 24 million litres in 2014 and has an expected market volume of 37.9 million litres by 2019, according to the report.

Industrial protective coatings is the fastest growing segment in the market, the company said, adding that the development and construction operations in ports such as Lagos and Luanda presented significant growth opportunities.

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By The Guardian 

 

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