Lubezine Volume 8 * NOVEMBER 2013 - JANUARY 2014 | Page 6

Frequently Asked Questions P.8
See also

THEMARKETREPORT
NE W S • BRIEFIN G • N EW P RODU CTS • T EC H NOLO GY

LUBRICANTS CONFERENCE

African lubricants market attracts
investors to fulfill emerging needs

T

he 2nd ICIS African
Base Oils & Lubricants
Conference took place
at the Southern Sun Cape Sun
Hotel in Cape Town on 6th and
7th November. The event drew
crowds from a number of top
chemicals companies, including
ExxonMobil, Engen, Chevron,
Petronas, Lubrizol, Total, and
PetroSA, providing a leading
platform for identifying and
establishing further insights
into the various markets
associated with base oils and
lubricants across Africa.
Anthony Lawrence, Research
Analyst for the Chemicals, Materials & Foods (CMF) unit at Frost
& Sullivan, delivered a presentation focused on identifying key
African Mega Trends influencing both the automotive and
industrial lubricants markets on
the African continent.
Mega Trends not only open
up substantial opportunities
to companies on a global level,
but they also significantly alter
the competitive structure of the
industries in which companies
operate, and the players within
them.
“In the competitive landscape
in South Africa, five tier one
petrochemical companies hold
between 80 and 90 percent of
the industrial lubricants market.
These companies include Shell,
Chevron, Engen, Total and
Castrol,” noted Lawrence. “
While in Nigeria, just over 70
percent of the total lubricants
market is held by six tier one
companies, which include Total
Nigeria Plc, Conoil Plc, Exxon4

Anthony Lawrence, Research
Analyst for the Chemicals,
Materials & Foods (CMF) unit
at Frost & Sullivan.

Mobil, Oando Plc, Forte Oil Plc
and MRS Oil Nigeria Plc.”
Frost & Sullivan analysis
presented at the conference
indicated a positive outlook
for lubricant manufacturers
and distributors in Nigeria.

The study revealed significant
growth from a total estimated
volume for lubricants of 185,000
metric tonnes in 2011 to more
than 274,000 metric tonnes in
2012. Nigeria’s total lubricants
volume for 2012 is expected to

In the competitive landscape in South
Africa, five tier one petrochemical
companies hold between 80 and 90
percent of the industrial lubricants
market

reach just short of three times its
volume by 2022.
Sandy Reid-Peters, Marketing
Technical Support Engineer
from ExxonMobil Chemical
Company, presented on the
outlook for energy and the role
that synthetic lubricants has in
improving energy efficiency
He also expanded upon the
drivers growing energy demand
across Africa, and how synthetic
lubricants will be able to address
fuel efficiency whilst facilitating
in the reduction of emissions.
It was noted that the market
for synthetics is becoming an
even greater opportunity for
many petrochemical companies, traders and the like.
David Gamble, Senior
Tribologist and Technical
Support to Supply Chain from
Anglo American, provided
the audience with in-depth
knowledge of the different types
of machinery used in mining,
which accurately put volumes
consumed within the mining
sector into perspective.
He later elaborated on areas
that may present themselves
as future opportunities for new
suppliers of lubricants within
the market.
Gamble also pointed out that
country government pressures
are on the increase and it is
becoming more apparent that
mining ventures should look
to buying products from local
suppliers. It therefore seems
apparent that joint ventures,
agencies, and distributors may
be the route to take in terms of
the supply of lubricants.

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LUBEZINE MAGAZINE | November 2013-January 2014