Ugandans tipped on oil and gas opportunities

PIC: Participants during a forum on business opportunities on oil and gas at Hotel Africana, Kampala recently. (Credit: John Odyek)

BUSINESS | OIL & GAS

KAMPALA - The energy ministry has urged Ugandan investors to prepare and advantage of opportunities in the oil and gas industry.

Robert Kasande, the energy ministry permanent secretary, said the law and regulations had ring-fenced certain areas of business for Ugandans. This was during the opening of a supplier workshop on oil and gas at Hotel Africana, Kampala recently.

Over 1,000 Ugandans turned up to listen to business opportunities available in the oil and gas industry. The presentations were made by oil companies, their agents and potential international contractors competing to win bids for construction.

Activities in the industry are now moving from exploration phase to the production phase of oil. The first oil barrel is expected out of the ground and out of the refinery in 2020.

The opportunities include food supplies, supplying materials such as cement, steel, providing security services, employment opportunities and consulting. Others are training, ICT, administration, transport and logistics.

In a speech read by Irene Batebe, the commissioner, midstream petroleum department, Kasande said there were opportunities for Ugandans to participate in business during the building of the oil pipeline, refinery, and construction of oil fields. He urged Ugandans to read the laws and regulations on local content.

"Know your rights and claim for the same. We want to ensure direct and indirect participation of Ugandans in the industry. Know the standards required to supply goods and services," Kasande said.

He said for a company to supply the industry, the company must register in the national supplier database in the Petroleum Authority of Uganda.

Irene Batebe (left) discussing with the business community at workshop

According to Kasande, out of 966 companies that have been registered, over 500 are local. He said the registration was still open and that Ugandan companies should not delay to register.

Mark Lamb, the East African Crude Oil Pipeline engineer representative from Gulf Interstate, the company that will build the pipeline, said Uganda's business community should  know about the opportunities and be prepared.

Lamb tipped Ugandan businesses to be proactive in interacting with contractors and oil companies and inquiring what it takes to do a task, project, business.

Countries with non-renewable resource wealth face both an opportunity and a challenge. When used well, these resources can create greater prosperity for current and future generations.

According to the Natural Resource Governance Institute, resource-rich countries have a great opportunity to harness their natural wealth for transformative and sustained prosperity. But if mismanaged, resource extraction can impose severe costs on a country.

As stewards of their extractive resources, it is typically the responsibility of governments to manage those resources for current and future generations.