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.
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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.
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By GlobalData"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.
