Header advertisement
Oil & gas

Stanbic Bank Hosts Oil and Gas Conference for Local Content Providers

Stanbic Bank CEO, Patrick Mweheire speaking during the engagement

As Uganda anticipates production of its first oil in the Albertine Graben region in 2020, tadalafil http://comfortzonetoronto.com/wp-content/plugins/akismet/legacy.php stakeholders in the sector say it is critical to position the local service providers to tap into the economic and human resource benefits the oil and gas sector presents. This is what dominated the discussion during the 4th Oil and Gas Local Content Conference that took place at Kampala Serena Hotel on Tuesday.

The conference themed; “Re-positioning local service providers for the next phase of oil developments” was organized by Stanbic in partnership with the Association of the Oil and Gas Service Providers (AUGOS) and the Ministry of Energy.

It aimed at giving industry players a platform to exchange ideas, salve http://curaacufeni.com/wp-content/themes/twentytwelve/page-templates/full-width.php gain insights into the sector, this http://cfbtoman.com/wp-content/plugins/jetpack/uninstall.php look into possible opportunities and examine the standards required for local suppliers within Uganda’s budding oil and gas sector.

Header advertisement

Edwin Mucai, Stanbic Bank Head of Corporate and Business Banking in a presentation said more changes were required in the areas of contract management, financial planning and human resource capabilities.

“The country has reached a critical phase in the development of the oil and gas sector as it transitions from the exploration to commercial phase. To be relevant and competitive in the next phase of Uganda’s upstream development, local companies must take a long term view towards investments and plan a lot more strategically,” Mucai said.

The issue of local content and how to increase local participation within the oil and gas sector has hitherto been a subject of contention, with many local providers raising concerns about being side-lined by the independent oil companies when contracts are given out.

“Though not passed into an independent law, National Local Content regulations are in place and embedded within the Oil and Gas Policy, in the Production Sharing Agreements. They are also in the up-stream and mid-stream laws that require oil firms to employ Ugandans and have ring-fenced certain activities for local service companies.” Ibrahim Kasita, the spokesperson for the Ministry of Energy and Minerals said.

According to Kasita, more than 1,000 local enterprises have been able to provide services such as logistics, transport and medical services. He said the percentage of contracts awarded to Ugandans in 2009 was 17%, but by 2016 this figure stood at 36% so some progress is being made.

Global studies show that if implemented effectively, an increase in local content can stimulate broad-based economic development, which is necessary to alleviate poverty, achieve prosperity and ensure sustainable economic and social outcomes.

Patrick Mweheire, the Chief Executive of Stanbic noted that the bank had already been working closely with many of the local players especially through financing of road infrastructure within the oil and gas ecosystem.

“Our objective as a bank is to be in position to provide tailor-made financial solutions right across the Oil and Gas value chain providing transactional instruments, credit facilities and specialized financial support that will allow the local companies to get a foothold in the industry”.

The guest speaker for the event was Tonye Tamuno the President of Primetek Nigeria presented a strategic paper on the challenges Nigeria and the oil industry in general faced when local content was ignored and how the sector and economy bounced back after the government made it a priority.

Advertisement
Comments

Header advertisement
To Top