95 percent of employees in oil and gas are Ugandans, says PAU

A number of goods and services categories in the oil and gas sector are reserved for Ugandan entities, among which include security, food and beverages, hotel and catering, human resource and office supplies. Photo / File 

What you need to know:

  • Whereas Ugandans are majority in the oil and gas sector, top positions are occupied by expatriate staff, according to Petroleum Authority of Uganda  

At least 95 percent of people employed in the oil and gas sector are Ugandans, according to the Petroleum Authority of Uganda (PAU). 

PAU, which is mandated with regulating the petroleum sector in Uganda, noted at the weekend that out of the 5,070 people employed in the oil and gas sector, 4,805, which translates to 95 percent, are Ugandans.

While presenting a paper titled the gains and misses so far in national content during the Uganda Chamber of Mines and Petroleum skilling and entrepreneurship training in Kampala, Mr Peter Kenneth Bintu, the PAU enterprise development officer, said of the 4,584, at least 389 are contractors and subcontractors employed from local communities.

These, he said, are part of the more than 11,800 Ugandans, who have been trained and certified in various oil and gas disciplines such as welding, health safety and environment, heavy vehicle, and scaffolding. 

However, he noted, majority of Ugandans are still employed in lower ranks  due to lack of required technical skills. 

The oil and gas sector has been primed as one of the sectors that will fast track Uganda’s development in terms of real gross domestic product and employment. Data indicates that under national content, small and medium enterprises have already gained from linkages with at least 200 small businesses, many of which are operated by women and youth benefiting, especially in the EACOP districts.  The National Content Regulations, 2016 reserve 16 categories of goods and services for Ugandan entities, among which include security, food and beverages, hotel and catering, human resource and office supplies.

Others are fuel supply, clearing and forwarding, locally available construction materials, civil works, environmental studies and impact assessments, communications and ICT and waste management services, where possible.

Mr Bintu said in the last five years, approximately 90 percent of procurements, which translate to $1.22b out of $1.35b, have gone to Ugandan companies, of which 20 percent of the $1.22b has  gone to Ugandan companies with local ownership.

The data further reveals that approximately 73 percent of the companies involved in supplying the sector are Ugandan founded, which translates to 460 companies out of the 624 involved in supplying the sector. 

Mr Bintu said that Uganda’s oil and gas sector continues to grow with the ongoing exploration, development and commercialisation projects that are bringing in enormous opportunities for both Ugandans and the economy.