Over 47,000 Ugandans secure jobs in the oil, gas sector

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The energy ministry says as of June 2024, over 47,000 Ugandans were employed in the oil, gas and related industries.

While presenting the energy sector manifesto achievements at the Office of the President auditorium in Kampala on Tuesday (November 19, 2024), ministry officials reported that 47,682 (13,389 direct and an estimated 34,293 indirect) Ugandans had been employed.

The ministry also reported that over 14,000 Ugandans have been trained and certified in various oil and gas disciplines of welding, health safety and environment, heavy goods vehicles and scaffolding, among others.

Led by ministry permanent secretary, Eng. Irene Batebe, they added that the Micro Small and Medium-sized Enterprises (MSMEs) Business Linkages Project targeting 200 MSMEs has trained 280 in East African Crude Oil Pipeline Project (EACOP) districts.

“Women and youth empowerment project in EACOP districts targeted 100 women-led businesses. More than 4,000 SMEs were trained in key oil and gas business requirements,” Batebe said.

According to the ministry, cumulatively $7.135b has been approved and $1.9b (26%) (sh6.9 trillion) of this to Ugandan companies.

“In the last six years, approximately $4.9b has been actualised, out of which $1.9b (40%) went to Ugandan companies with Ugandan ownership. Approximately 73% of the companies involved in supplying the sector have been Ugandan companies (460/624),” Batebe said.

On EACOP progress, she said on September 30, 2024, the first batch of 21km of EACOP line pipes arrived in Uganda at the main camp and pipe yard (MCPY) 4 in Kyotera.

“This marked a significant milestone for the project in which UNOC holds a shareholder stake. As of September 2024, the EACOP project progressed to approximately 43.5%, with engineering at 85.6%, procurement at 60.7% and construction and commissioning at 17.3%,” she said.

She added that early civil works for the Terminal and Jetty in Tanga are near completion and detailed engineering stands at 70%.

“The implementation of the Resettlement Action Plan (RAP) for the Right of Way (ROW) and above ground installations is progressing well. In Uganda, the EACOP project has 3,660 Project Affected Persons (PAPs). So far, compensation of the PAPS stands at 95%,” she said.

She said, over 177 resettlement houses for the PAPs who opted for physical relocation were successfully handed over.

Batebe added that the Government, through UNOC, has so far successfully raised $308m (sh1.130 trillion) to fund the 15% shareholding in EACOP.

The Government is also working with EACOP to ensure that financial close for EACOP is achieved as soon as possible.

The ministry also reported that the process to secure funding for common infrastructure for Kabaale Industrial Park is ongoing.

“Discussions with UNRA, MoWT, UETCL, MWE and NITA-U are ongoing for the provision of utilities and roads to the Park and locations of key oil roads are being completed,” Batebe said.

She added that Kabalega International Airport is progressing well with the first phase complete.

“Funding was secured from EKF Danish Funding ($120m) for design and the construction of the Phase one infrastructure in KIP has been approved by cabinet to proceed, and further discussion is ongoing for the implementation,” she said.