Nigeria Oil Country Tubular Goods Market to Grow at a CAGR of 6.5% to reach US$ 718.60 million from 2020 to 2027

Nigeria Oil Country Tubular Goods Market to 2027 - Country Analysis and Forecasts by Process (Seamless, and Welded); Product (Drill Pipe, Well Casing, and Production Tubing); Application (Onshore, and Offshore)

Publication Month : Mar 2020

  • Report Code : TIPRE00009678
  • Category : Energy and Power
  • Status : Published
  • No. of Pages : 126
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The Nigeria oil country tubular goods market was worth US$ 440.51 million in 2019 and is projected to reach US$ 718.60 million by 2027; it is expected to grow at a CAGR of 6.5% during the forecast period.

Oil Country Tubular Goods i.e., OCTG, refers to a range of rolled metal items, more generally related to as pipes, and the various attachments used in the process of manufacture and operation. These can include tubes for drilling, lining or tubing, thread protectors, stabbing guides, bumper rings, and chocks for the screw. Due to the requirements of each pipe, the piping items classify as OCTG in terms of their appropriate charging conditions and what they can pass, how solid they are, and their composition. OCTG production is directly influenced by the rise in demand for fossil fuels. The more wells are drilled, the more OCTG is required, in simple terms. Oil price volatility affects demand for OCTG in the short term, as less wells are drilled during downturn in the industry. The main drivers for OCTG demand are underground, horizontal, sour gas, and offshore wells.

As per CIA World Factbook, Nigeria's main export partners are the United States, Spain, India, Brazil, France, and the Netherlands. Since 1936, Shell has been operating in Nigeria and currently dominates gas output in the country, as the Niger Delta, which comprises much of the gas wealth of Nigeria, also houses most of Shell's hydrocarbon reserves. Other natural resources in Nigeria, apart from petroleum, include natural gas, gold, iron ore, coal, calcareous, niobium, lead, zinc, and arable land. The oil & gas industry accounts for about 10 percent of gross domestic product, and revenue from petroleum exports accounts for about 86 percent of total revenue from exports. Major factors contributing towards the growth of Nigeria oil country tubular goods   market growth includes substantial investment towards development of pipeline infrastructure, and increasing shale production and a subsequent hike in horizontal and unconventional drilling activity.

Lucrative Nigeria Oil Country Tubular Goods Markets

Lucrative Nigeria Oil Country Tubular Goods Markets
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Market Insights- Nigeria Oil Country Tubular Goods Market

Significant Investments to Build Pipeline Infrastructure Drives the Demand for Nigeria Oil Country Tubular Goods  

The substantial investment towards the development of pipeline infrastructure is one of the major factors driving the Nigeria oil country tubular goods market. The use of natural gas has been made very appealing by environmental issues in Nigeria. With the increasing demand for electricity, natural gas (Gas-to-Power) consumption is likely to increase in the coming years and drive Nigeria oil country tubular goods market. Further, in the next ten years, the use of natural gas for producing electricity is expected to grow more than 25 percent faster than fuel consumption of other forms in the Nigeria oil country tubular goods market. However, synergies between gas consumption and electricity production have brought about the most significant boost to domestic and foreign marketing prospects for coal. The overall construction costs of natural gas pipelines range from US$ 800,000 per km to US$ 2 million per km (for projects with full diameters over rugged terrain). The Nigerian power sector can only operate successfully to the degree that they have a stable natural gas supply. There is also an export gas pipeline in the works, known as the West African Gas Pipeline, but it has faced several setbacks. The pipeline will allow natural gas transportation to Benin, Ghana, Togo, and Cote d'Ivoire. Much of Nigeria's natural gas is flared off, and it is estimated that the lack of flared gas causes Nigeria to lose $18.2 million every day.

Impact of COVID-19 Pandemic on the Nigeria Oil Country Tubular Goods Market

Coronavirus outbreak first began in Wuhan (China) during December 2019 and since then it has spread at a fast pace across the globe. As of March 2020, China, Italy, Iran, Spain, republic of Korea, France, Germany, and The US are some of the worst affected countries in terms confirmed cases and reported deaths. According to the latest WHO figures, there are ~ 3, 32,930 confirmed cases and ~14,510 total deaths globally. The COVID-19 is anticipated to hamper the market growth of Nigeria oil country tubular goods market to a large extent. As, the coronavirus outbreak has been affecting economies and industries in Nigeria due to lockdowns, travel bans, and business shutdowns.

Process Insights- Nigeria Oil Country Tubular Goods Market

Nigeria Oil country tubular goods market by process is segmented as seamless and welded. Seamless pipes are more preferred when compared to welded pipes owing to their capability to resist extremely high pressure without cracking. Moreover, seamless pipes provide uniformity of shape and avoid the chance of a weak seam that further makes it suitable for the high-pressure applications such as, hydrocarbon exploration and production. On the other hand, welded pipes are most cost-effective compared to seamless pipes and can be easily customized based on the operational requirements.

Nigeria Oil Country Tubular Goods Market, by Process– 2019 & 2027

Nigeria Oil Country Tubular Goods Market, by Process– 2019 & 2027
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Source: The Insight Partners Analysis, Primary Interviews, Magazines and Journals, and Secondary Sources

Product Insights- Nigeria Oil Country Tubular Goods Market

Nigeria Oil country tubular goods market by product is segmented as drill pipe, well casing, and production tubing. The drill pipe segment held the largest market share in 2019, while the well casing segment is expected to be the fastest growing segment in the market during the forecast period.

Application Insights- Nigeria Oil Country Tubular Goods Market

Nigeria Oil country tubular goods market by application is segmented as offshore and onshore. Apart from difference in their drilling locations they also vary in profits, timelines for processes & drilling and cost. With new developments in technology there is a rising demand for premium pipes. To save the overall cost & to reduce the hazards, the oil country tubular goods should be correctly selected during drilling activity. Growth of Market also depends on new advents in drilling technology in terms of improving efficiency to increase oil & gas recoverability.

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Nigeria Oil Country Tubular Goods Market: Strategic Insights

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Market initiative is a strategy basically adopted by the companies to expand their footprint across the world and meet the growing demand of their customers. The market players present in Nigeria oil country tubular goods market are mainly focusing towards development of advanced and efficient products. By signing partnership, contracts, joint ventures, funding, and inaugurating new offices across the world permit the company maintain its brand name.

  • 2019:

    Vallourec won a US$ 900 Mn contract from Abu Dhabi National Oil Company (ADNOC) for the supply of tubing and casing.
  • 2019:

    TMK and NOVATEK signed a strategic partnership agreement Cooperation Agreement. The agreement includes the policies and approaches for supplying TMK’s premium casing and tubing pipe to NOVATEK

Nigeria Oil Country Tubular Goods Market – By Process

  • Seamless
  • Welded

Nigeria Oil Country Tubular Goods Market – By Product

  • Drill Pipe
  • Well Casing
  • Production Tubing

Nigeria Oil Country Tubular Goods Market – By Application

  • Onshore
  • Offshore

Nigeria Oil Country Tubular Goods Market- Companies Profiles

  • DAMAGIX GROUP
  • EVRAZ plc
  • Hunting Group
  • ILJIN STEEL CO., LTD
  • JFE Steel Corporation
  • National Oilwell Varco, Inc.
  • OilPro Oil and Gas Limited
  • Tecon Oil Sevices Ltd
  • Tenaris
  • TMK
  • TPCO Enterprise, Inc.
  • VALLOUREC
  • Baker Hughes Company
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

This text is related
to segments covered.

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

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to country scope.

Frequently Asked Questions


Which application segment dominated Nigeria OCTG market in 2019?

The on-shore application based OCTG products dominated the Nigerian OCTG market in 2019 owing to considerable presence of existing infrastructure of pipeline in the country. However, from a growth perspective off-shore is projected to witness more lucrative growth due country’s focus towards off-shore oil exploration and production capabilities.

Which factor is driving the Nigerian OCTG market?

Factors such as favorable government policies as well as initiatives along with substantial investment towards development of new pipeline infrastructure is the major market driving forces. In addition to this, the growing production capabilities and energy demand from nearby African countries for fuels is anticipated to rise and subsequently drive the market growth for Nigeria OCTG market during the forecast period.

Which process is expected to witness the fastest growth for OCTG products by 2027?

The seamless process based OCTG products are expected to maintain their dominance during the forecast period as well due to their considerable large market share and large scale adoption across different oil & gas industry verticals.

The List of Companies - Nigeria Oil Country Tubular Goods Market

  1. DAMAGIX GROUP
  2. EVRAZ plc
  3. Hunting Group
  4. ILJIN STEEL CO., LTD
  5. JFE Steel Corporation
  6. National Oilwell Varco, Inc.
  7. OilPro Oil and Gas Limited
  8. Tecon Oil Sevices Ltd
  9. Tenaris
  10. TMK
  11. TPCO Enterprise, Inc.
  12. VALLOUREC
  13. Baker Hughes Company

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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