materials are steep, the report stated.
In Angola several contracts have
been awarded for the development of
offshore facilities by the international
oil companies exploring or produc-ing crude oil and gas in the country’s
offshore blocks. In addition, a number
of dry docks and fabrication yards are
anticipated as more and more crude oil
projects come online.
For example, a number of floating,
production, storage and offloading
(FPSO) vessels have been delivered or
are under construction to meet the increasing demand. Italy’s Eni SpA has
awarded a $2.9 billion contract to
Malaysia’s offshore oilfield services firm
Bumi Armada Berhad for the charter,
operation and maintenance of a FPSO
to be deployed at Block 15/06. The vessel will be delivered by 2016.
Bumi has in turn awarded Swiss-based power-grid maker ABB a contract
for the supply electrification and automation systems for the FPSO which is
set to churn out 80,000 barrels/day by
the end of 2016.
“The vessel will control the entire
extraction process, storing of oil and
gas until they can be offloaded to shuttle
tankers,” the company said previously.
Separately, Sweden-based Alfa Laval
has also been awarded a $30.7 million
contract to supply Framo pumping systems for Eni’s two FPSOs in Angola
with a deadline to deliver for 2015 and
2016. “The order comprises offshore
pumping systems for two FPSOs to be
moored outside the Angola coast,” the
company added.
Both Nigeria and Angola offshore
oil and gas exploration and production activities are likely to continue
drawing more drill ships, FPSOs, FPSO
topside modifications, flow lines and
subsea equipment as the countries
bring more offshore oil and gas fields
into operation.
Nigeria and Angola offshore oil and
gas paints and coatings market compound annual growth is projected to
hit 9. 6 percent and 12. 3 percent respectively until 2019.
Frost & Sullivan said Nigeria local
paints and coatings manufacturers are
supplying 30 percent to 46 percent of
the country’s demand while the rest is
supplied through imports.
In Angola, the market analyst said
6 percent of the offshore oil and gas
paints and coatings are manufactured
locally but a large share of the demand
is met by imports.
“The distribution of local brands
supported by sales of international
brands will ensure long-term growth in
the Nigerian and Angolan markets.”
Frost and Sullivan estimates Nigeria’s
total offshore oil and gas paints and
coatings market at 24 million liters,
with potential to grow to 37. 9 million
liters by 2019.
“Development and construction
operations in ports such as Lagos and
Luanda present significant growth op-
portunities,” the report said, adding
“significant technological investments
have been made in the manufacturing of
offshore paints and coatings since 2013.”
However, the analyst said “price fluc-
tuations and customer price sensitivity
are major factors impeding growth in
the market, both of which have led to
underdevelopment in certain areas and
significant growth in others.”
“While in-country manufacturing
is a must-have, building a brand repu-
tation will be essential for long-term,
sustainable growth,” said Abdullah.
“Partnerships between local and inter-
national companies will speed up the
development of high-quality products
and assist offshore oil and gas paints
and coatings manufacturers in meeting
demand in the Nigerian and Angolan
markets.”
Key market players in Nigeria in-
clude Berger Paints, Portland Paints
and Products, CAP PLC, DN Meyer
PLC and International Paints while
the Angolan market is dominated by
Hempel, AzkoNobel, Dekro, Sigma
Coatings and International Paint.
The oil and gas boom in Africa is
set to be one of the major drivers of
the continent’s coatings market going
forward. CW
