Wednesday, March 17, 2010

Wah Seong may buy into Nigerian pipe-coating firm

Wah Seong Corp (5142) , Malaysia's third-biggest oil and gas services provider, is in talks to acquire a pipe-coating business in Nigeria to tap demand for its products amid increased exploration.

The company may provide technical assistance and later take up an equity stake in Orleans Group in the West African nation, deputy group managing director Giancarlo Maccagno said in an interview yesterday. Details will be known by the end of April, he said.

"The time is right now for us to look more aggressively at acquisition opportunities," Maccagno said.

Oil and gas exploration is poised to increase as the economic recovery spurs demand for energy. The International Energy Agency last week raised its forecast for global oil demand this year for a second month, led by rising consumption in emerging nations.

About RM564 billion is set to be spent on deepwater exploration and production in the next five years, of which 75 per cent will be invested in West Africa, Brazil and the Gulf of Mexico, Maccagno said. - Bloomberg

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