Analysis from US-based consulting firm Frost & Sullivan has found that Nigeria and Angola offer opportunities for producers of offshore oil and gas (O&G) paints and coatings.
According to the ‘Analysis of the Offshore Oil & Gas Paints and Coatings Market in Nigeria and Angola’, the two countries provide raw materials and local manufacturing capabilities and are emerging as the African hub for this market.
The analysis found that in 2014, the market earned revenues of $675.1m, which are expected to reach $1.13bn in 2019.
The study covered applications that include offshore O&G facilities, dry docks and fabrication yards.
Frost & Sullivan Chemicals and Materials research analyst Abdul-Baasit Abdullah said: "The subsidisation of manufacturing makes Nigeria and Angola vital to the production of offshore O&G paints and coatings in Africa, with the goal of African needs being fulfilled by African countries.
"The drop in crude oil prices has reduced the base costs of paint through a reduction in raw material cost of 8.3%, driving competitive pricing and consumption.
"Partnerships between local and international companies will speed-up the development of high-quality products and assist offshore O&G paints and coatings manufacturers in meeting demand in the Nigerian and Angolan markets."
Frost & Sullivan’s latest analysis is part of the chemicals and materials growth partnership service programme.