More than 100,000 jobs to be created in Uganda’s oil sector
Ms Ahlem Friga-Noy, of Total Uganda (R), answers questions during the presentation of findings of the survey in Kampala yesterday. PHOTO BY MICHAEL KAKUMIRIZI.
What you need to know:
Employment. A study commissioned by joint venture partners indicates that more than 150,000 jobs are expected to be generated as the oil sector gets to eventual production.
KAMPALA- Between 100,000 and 150,000 jobs are projected to be generated as the oil sector transitions from exploration and appraisal to development and eventual production, according to a study conducted by three joint venture partners.
The jobs availability, expected within three years if, the report says, there are no major delays in project execution, will either be indirect or induced in sectors benefiting from the economic development triggered by the oil sector, the report dubbed ‘Industrial Baseline Survey, indicates.
Total, Tullow Oil Plc and China National Offshore Oil Corporation (Cnooc) sponsored the survey which was conducted between March and July last year, according to Tullow’s national content manager Nelson Ofwono.
One of the graphs in the report shows demand for direct jobs rising towards the second year of development and peaking at 13,000 direct jobs in the third year, before gradually falling to 3,000 jobs in the fifth year.
Mr Benard Ongodia, a senior geophysicist in the Energy ministry’s petroleum exploration and production department yesterday said government is, however, going to carry out “a much broader study funded by the World Bank” to get the specifics of how many people are needed and where.
“The transition from exploration and appraisal necessitates the development of required skills so that Ugandans actively participate in the oil and gas sector.”
“It is our hope that local service industry will embrace results of the study and prepare to tap into the sector,” he said.
According to the survey report released yesterday, out of the total manpower required, 15 per cent will be engineers and managers, 60 per cent technicians and craftsmen and 25 per cent people without any educational background.
Twenty five sectors were highlighted for indirect opportunities in road construction, catering, vending, furniture manufacturing, food supply, security services, manpower agencies and general maintenance among others.
As part of the survey, questionnaires, were sent out to 700 companies of which 200 replied.
“Two hundred is a good result in terms of response based on the expectations of our survey but also our findings are estimates so the results can be low or they can be high,” Mr Vincent Nicolini, Total’s contracts and purchasing manager said, adding that most companies approached during the survey were uncooperative and “even refused to return calls.
Private Sector Foundation Uganda executive director, Mr Gideon Bagadawa, told Daily Monitor the estimates were on the lower side.
“I believe there are much more job opportunities than were listed. That aside I believe few Ugandans have the skills required. If these companies advertised these jobs – especially the skilled ones, they will end up in the hands of foreigners,” he said.
Total’s corporate affairs manager, Ms Ahlem Friga Noy, said it was the first time oil companies are doing such a survey and it is because “they were are interested in ensuring success of this sector”.
“The fear is the capability of the private sector and the education system to meet expected standards in the sector,” she said. These findings are similar to those indicated in a report released by Tullow late last year.
In the Tullow report, the same number of projected jobs, direct and indirect, were indicated in the transport, hospitality, communications, banking, catering, waste management, IT services, construction, training, emergence services, advertising and public relations sectors.
Cnooc Uganda vice president, Jin Wei Gan said the survey was in line with obligation to involve Ugandans in the sector.
“Promotion of national content is not only a legal requirement but also an opportunity to ensure the success of the sector,” he said.
Tullow’s managing director Jimmy Mugerwa said Uganda is yet to be ready for the opportunities but can catch up if steps are taken in the right direction.
In 2006, Uganda confirmed commercial quantities of oil currently estimated at 3.5 billion barrels. Early last year, government issued the first production license to Cnooc, paving way for the firm to start preparing its Kingfisher field for production.
