The Oil and Gas Dialogue set to point out opportunities for Ugandans in the sector

Many people have always regarded the oil resource as a resource curse for many countries and what is left to see is if it will be a blessing or a curse for the Pearl of Africa. With oil production expected to start in 2020, there have been developments set aside to enable the Ugandan business man or entrepreneur earn from the almost thriving oil and gas sector by offering goods, services, skill set, and whatnot required to enable the industry thrive smoothly and to alleviate poverty in the country. Furthermore, the much anticipated crude oil pipeline is now set to run from Hoima in Uganda to Tanga in Tanzania.

It should be remembered that Uganda is currently described by the World Bank as the hottest inland exploration frontier in the world and the country to watch in the oil and gas space, due to the commercial discovery of an estimated 6.5 billion barrels of oil, 1.4 billion of which are recoverable.

The oil and gas business opportunities conference is set for 28th-29th March at Hotel Africana in Kampala under the theme “unlocking local content opportunities in the oil and gas sector.” The Dialogue is being organized by AUGOS (Association of Uganda Oil and Gas Service Providers) and ATOGS (Association of Tanzanian Oil and Gas Service Providers).

The dialogue intends to create a meaningful discussion around full exploitation of business opportunities in the industry and enhance capacity and readiness of service providers.

In a bid to offer same footing for local businesses to earn through the Oil and Gas sector, there have been laws that were set to attain this goal;

  • The Petroleum (Exploration, Development and Production) (National Content) Regulations 2016 came into force on 6th May 2016 and are intended to ensure participation of indigenous Ugandan entities in the oil and gas sector.

The above regulation, requires any licensee, contractor and sub-contractor to give priority to goods and services that are produced and available in Uganda and which are rendered by Ugandan citizens and companies during procurement. In addition, they are required to reserve the contracts for ring fenced goods and services like security, foods and beverages, hotel accommodation for supply by Ugandan citizens and companies.

According to Prof Charles Kwesiga, the AUGOS chairman and also chairman of the Governing Council of the Uganda Petroleum Institute, Kigumba (UPIK), oil companies are particular on skills and so Ugandan businesses need to get training, skilling and certification- The kind of welder needed to work on the pipeline is different from the one in general industries. They also need different skills and certification. Professor Kwesiga while speaking on NTV, also noted that oil transforms economies and so there is an opportunity for all Ugandans. There are different jobs in the value chain including engineering, transport, legal etc. This dialogue will help you identify the opportunities in the industry.

“The Oil and Gas dialogue will provide information on how to participate, service requirements, skills, certification and standards, personnel, timelines, finances, and any other information that could be helpful to their preparations”, commented Mugarura Emma, the AUGOS CEO. “Uganda is currently transitioning from oil exploration stage to development and production. The exploration stage took up 3 billion dollars with about 30 percent being retained in-country,” he added.

Mr. Emma Mugarura also made it clear that there are contracts and opportunities worth approximately $12 billion for the upstream project making it viable for local businesses to compete.

In 2013, the China National Offshore Oil Corporation (CNOOC), Total Ugandaand Tullow Oil conducted an Industrial Baseline Survey to identify opportunities for Ugandans to participate in the oil and gas industry;

A survey done, identified business opportunities for Ugandans in; transport, security, foods/beverages, accommodation and catering, human resource management, office supplies, fuel supply, land surveying, clearing and forwarding, waste management. Other business opportunities for Ugandans in the oil and gas industry are crane hire, supply of construction materials, civil works, supply of locally available drilling and production materials, Environment studies and impact assessment, communications and information technology services.

According to the same survey, the Lake Albert Basin Development projects will generate thousands of direct jobs in Uganda, with a peak of about 13,000 workers in the construction phase and a plateau at 3,000 people in the operation phase. Out of total manpower required, 15% are engineers & managers, 60% are technicians and craftsmen and 25% are people without any educational background (‘unskilled’).

Beyond direct jobs that will be created on site, Oil & Gas activity will also have a potential to generate 100,000 to 150,000 indirect and induced jobs. Out of total newly created jobs, 80% will be short-term for the peak of construction and will have to be transferred.

To attend the Oil and Gas Dialogue, non AUGOS members will have to pay $200, AUGOS/ATOGS members will have to pay $100, and UCMP members will be paying $150. Book your spot today and don’t miss out.

If you are interested in showcasing your goods and services to potential business partners in the oil and gas industry, you can secure exhibition space today at only $500 by booking via #OilGasDialogue

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