Uganda’s Oil Industry Expansion and Employment
Uganda’s oil sector employs over 13,600 Ugandans, with expectations of significant growth as the country prepares for its first oil production in 2025. National content laws mandate substantial Ugandan employment across various roles within the sector.
At least 13,607 Ugandans are currently employed in the nation’s oil sector, and this figure is anticipated to escalate significantly as preparations for the inaugural oil production in 2025 intensify.
“By the conclusion of March 2024, the employment count within the sector (oil and gas) reached 13,607, with over 90% comprising Ugandan nationals,” remarked Irene Batebe, the Permanent Secretary of the Ministry of Energy.
“Throughout the entirety of 2023, employment within the Oil and Gas Sector exhibited a favorable trajectory, witnessing a rise from 12,949 employees in Quarter One to 13,067 in Quarter Four, peaking at 13,819 by the conclusion of June,” she supplemented.
Batebe delivered these remarks on Thursday 11th April, 2024 during the inaugural Sectoral Linkages Conference for the oil and gas sector in Uganda, convened at Speke Resort, Munyonyo.
Uganda’s national content legislation stipulates that for a company to qualify as Ugandan, it must employ a minimum of 70% Ugandan nationals, unless demonstrably unable to locate sufficient Ugandans with requisite qualifications. Additionally, companies are mandated to appoint 20-30% of Ugandans in managerial roles, 30-40% in technical positions, and 95% in support functions.
These figures are projected to burgeon over a span of 5-10 years, under vigilant oversight by the Petroleum Authority Uganda.
Batebe affirmed that the employment landscape of the sector is characterized by direct employment by licensees and substantial employment prospects generated by contractors and subcontractors, with a pronounced emphasis on engaging Ugandan nationals.
She further articulated, “Moreover, Community Employment from the surrounding areas amounted to 4,595 by the conclusion of March 2024.”
The nation’s resource reserves are estimated at 6.5 billion barrels of Oil initially in place, with 1.4 to 1.8 billion barrels deemed recoverable. Merely 15% of the prospective area is currently licensed, with preparations underway for the subsequent licensing round.
Batebe underscored efforts to fortify human capital development through robust training initiatives implemented by both licensees and contractors.
“A total expenditure of US$ 6,000,629 was allocated to training Ugandans across diverse disciplines, totaling 417,507 man-hours in 2023,” disclosed Batebe, further noting, “In 2023, capacity-building initiatives among public officers benefited 51 individuals through sponsored training programs, with an additional 945 Ugandans benefiting from internships and specialized training opportunities.”
The national content regulations apply universally within the oil and gas sector, encompassing licensees, project operators, developers, their contractors, and subcontractors. Licensees are mandated to ensure that their contractors and subcontractors adhere to national content plans aligned with statutory requirements.
The progression of Uganda’s Oil and Gas sector into the development phase entails an anticipated total investment of US$ 20 billion preceding the inaugural oil production scheduled for 2025.
This investment primarily focuses on infrastructure development for petroleum extraction from discovered fields, establishment of requisite commercialization facilities (refineries and pipelines), and auxiliary support infrastructure such as roads and the second international airport.
Batebe emphasized that these investments offer opportunities to the nation, particularly through the involvement of Ugandans and Ugandan enterprises in providing requisite goods and services, commonly referred to as national content.
