Tenaris has reached an agreement with Prime Investment & Corporate Services Ltd. to acquire a 40 percent stake in Pipe Coaters Nigeria Ltd., a Nigerian company located in the Onne Oil & Gas Free Zone.
Pipe Coaters Nigeria Ltd. is one of the leading companies in the Nigerian pipe coating industry, offering a wide range of products such as internal, anticorrosion, concrete and thermal insulation coatings for deepwater applications, as well as other tubular value-added services such as double jointing. The company has state-of-the-art facilities extending 150,000 square meters and employs approximately 300 people.
This partnership will combine Tenaris's industrial know-how and technical capabilities with PCN's expertise and presence in Nigeria, located in the Onne Oil & Gas Free Zone, among the largest of its type in the world and in operation since 1996. The joint venture has been undertaken in order to provide oil and gas companies working both onshore and offshore with a complete pipeline package solution made in Nigeria, including pipe coating and ancillary services, under Tenaris's project management control.
The investment in Pipe Coaters Nigeria Ltd is another milestone in Tenaris's long-term commitment to Nigeria, which began over 30 years ago with the supply of OCTG pipe to the local oil and gas industry. In 1998 the company opened its first representative office in Port Harcourt and, one year later, built a pipe stocking area in Onne. In 2004, Tenaris established its first manufacturing operation, a full threading facility for OCTG pipe, in Onne. In 2007 Tenaris acquired a second threading operation in Warri.
Through the continued expansion of its local operations, Tenaris is supporting the industrialization of Nigeria in the oil and gas sector.