Competition hots up to service Africa’s oil operations

Competition is building for support services for Africa’s west coast oil operations. One of India’s biggest ship builders, ABG Shipyard, is forming a joint venture to set up a large shipbuilding yard and rig support service in Nigeria. The yard will compete directly against Walvis Bay, Saldanha Bay, Cape Town and, most recently, Ngqura, for the support of oil rigs. News of the investment comes at the same time as Lonhro has announced plans to invest in Equatorial Guinea’s Luba Freeport to service the West African oil industry. According to reports, ABG is expected to own between 40% and 50% of a joint venture company made up of a group of Nigerian investors. ABG Shipyard will provide technical expertise for the Calabar Shipbuilding Yard, and have management control for a period of 20 years if the Nigerian government gives the go-ahead to the project. It will provide refitting and maintenance for the vessels and rigs working on the west coast of Africa. The shipyard will also construct oil drilling rigs, support and offloading vessels, LNG carrier vessels, container carriers, and navy patrol vessels. It will compete against South Africa’s own small shipbuilding industry.