Oil & gas

Uganda Still Unprepared for Oil Production – Report

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visit this site http://courtneybarnett.com.au/wp-admin/includes/class-wp-posts-list-table.php geneva; font-size: small; line-height: 200%;”>The survey pointed out a number of supportive areas that are still lagging behind, and are likely to slow down the journey to the country’s first oil year.

These include insufficient technical training, transport and logistics, work safety products, waste management, light equipment, and operation services.

Government last February signed and MoU with the three Companies Tullow, CNOOC and Total E&P which laid out the framework for the commercial production of Uganda’s Oil.

The country is now on construction phase of the oil and gas industry in the country.

To prepare for the for this phase, the companies agreed on the need to determine the potential demand for goods and services needed in the production, compared to the capacity of the Ugandan market to deliver them.

The companies thus undertook an extensive Industrial Baseline Survey [IBS] through consultation with both their and government’s technical teams, and the private sector.

“The survey assessed the quality and quantity of goods and services that will be procured for the project we are undertaking as compared to the existing human and productive capacity of the Uganda capacity,” said Tullow Uganda General Manager Jimmy Mugerwa at the launch of the report in Kampala on Wednesday.

It emerged in the Survey that an outstanding challenge relating to human resource remains in both the number and level of certification of technicians to comply with oil and gas standards.

It was concluded that there is going to be a number of gaps in absolute values of certain jobs as civil craftsmen, drivers, and mechanical technicians.

“For the electoral technicians and welders the main challenge will be to avoid ‘drying out’ the rest of the economy,” read the report.

Some of the sectors that will need a complete transformation to be able to cope with future needs of the industry, according to the study included transport by road, warehousing and storage, and lifting services.

Ugandan industries producing transportation logistics, work safety products, production operation services, light equipment, and hazardous waste according to the study, performed way below the Oil and Gas standards and their capacity an standards must be supported to avoid massive imports.

Services

Only Security services and cement manufacturers showed the prospects of meeting the industry demands.

Some of the local companies interviewed by the researchers complained about lack of visibility on future oil and gas projects.

They had no idea where the needs will start, what type of products and services will be required, at what standards and of what quantities.

The companies also mentioned the difficulty in accessing capital required to invest and develop activities, as rates of loans in Uganda are extremely high making it nearly impossible for interested parties to develop any business.

Mrs Jessica Kyeyune CNOOC’s Content Manager at the launch warned that if government and all stakeholders don’t up efforts of putting these demanded products in place, the oil production project will be

compelled to expensively import most of its input materials and

services.

“Some goods and services are likely to be imported due to large quality and quantity gaps while they could be produced in the country with relative small efforts.”

“Protective personal equipments for instance, such as gloves, overalls and boots are currently being imported yet this is an industry that can easily be started up in Uganda with minimum investment,” she noted.

The research recommended number of interventions including government support to Small and medium enterprises, through creation of an industry enhancement center, that would help provide extensive training on tendering, and mandatory standards of the Oil and Gas industry.

The study also recommended support of specific sectors as well as establishment of a lot more new industries, which would in the long run benefit the Ugandan economy in even beyond the duration of the oil and gas projects.

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