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Local Content in the Oil and Gas Sector in Uganda Presented to The

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Local Content in the Oil and Gas Sector in Uganda Presented to The Local Content in the oil and gas Sector in Uganda Presented to the Community Dialogues Bintu Peter Kenneth Enterprise Development Officer Petroleum Authority of Uganda October 2020 PRESENTATION OUTLINE 1. Introduction: 2. Initiatives to enhance national participation 3. Progress registered 4. Sectoral linkages 5. What next after FID 6. Linkages 7. Conclusion 1. Introduction: National Content Development in the oil and gas sector Definition Employment of Ugandan • Value added or created in the Ugandan citizens. economy through the employment of Ugandan workers and the use of goods Transfer of produced or available in Uganda and knowledge Capacity and services provided by Ugandan citizens technology; building; and enterprises Key pillars National Content goal : Use of locally produced Enterprise To achieve in-country value creation goods and development; and retention whilst ensuring services competitiveness, efficiency and effectiveness. Introduction: Existing policy & regulatory framework National Oil and Gas Policy The Petroleum (Exploration, Development and Production) Act, 2013 Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act, 2013 The Petroleum (Exploration, Development and Production) Regulations 2016 The Petroleum (Refining, Conversion, Transmission and Midstream Storage) Regulations 2016 The Petroleum (Exploration, Development and Production) (National Content) Regulations 2016 The Petroleum (Refining, Conversion, Transmission and Midstream Storage) (National Content) Regulations, 2016. 5 2. Initiatives to achieve National Content National Content Study, 2011 . 1. Opportunities and challenges for Communication of and oil and gas projects Ugandans’ participation in oil gas demand 2. 8. Creation of an projects. Envisage creation Enterprise of technical Enhancement training institute Industry Baseline Survey, 2013 Centre . Undertaken by Oil companies to assess local capacity to supply the 7. 3. Dialogue between Recommendations Development of oil and gas industry with skills, National Supplier universities and database & National goods and services private employers Talent Register Capacity Needs Analysis / Workforce 6. Skills Devt Strategy and Plan, 2014 4. Support to best Support to specific existing technical & selected sectors . Estimated labor market needs and institutes 5. the gaps in the oil and gas and Support to best existing related sectors over the next ten universities years (2015 to 2025). 5 3. Progress of National content development Utilization of goods and services produced and available in the country Cummulative Investment USD Cum National Content spent 3500 3318 3084 2973 3000 2781 2500 2415 1826 • 2000 1500 1394 1074 909.24 1000 760.92 776 722.07 510 652.95 500 45.22 119.72 193.32 340.2 499.23 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 700Total Annual Investments (Million USD) Total Annual National Content (Miillion USD) 589 600 510 Value retention in the country USD 900M (2012 – 2017) 500 432 400 366 Out of the USD 40m spent on contracts in 2018, 69%(24.8m) 298 320 266 300 234 were contracts signed with Ugandan companies 192 200 146.88 159.03 153.72 148.32 Some areas include; 111 74.5 73.6 69.12 Legal services , Freight Forwarding and customs clearance, 100 45.22 38.85 0 Waste collection services, Assorted PPE, Catering services, 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Survey services 3. Progress of National content development National Supplier Data base: Provides visibility of Ugandan Suppliers NSD APPLICATION PROGRESS NSD QUALIFICATION PROGRESS 3000 1400 2558 1252 1200 2500 2154 1047 1000 2000 1768 1471 800 1500 600 516 424 1000 774 378 400 513 500 200 135 0 0 2017 2018 2019 2017 2018 2019 UGANDA FOREIGN App Received Qualified 3. Progress of National content development 3 b) Employment Since 2017, the sector has employed over 1000 people both directly and indirectly. Currently, 217 people are directly employed 74% of whom are Ugandans 3. Progress of National content development NOGTR Skill level of talent on the NOGTR 1. NOGTR is an e-government online management information system. Entry Level 2. It captures demand and supply of Ugandan manpower in the oil 7% (56) and gas sector. Expert/Mastery 22% (172) Objectives Basic Entry Level 21% (167) Basic Skilled Capture information on the available industry talent; Expert/Mastery Skilled Provide information on job types/specifications for available 50% (401) opportunities; Provide trends/data on development/utilization of talent in the industry; and Establishment of a National Talent Register. A total of Facilitate cross-movement of talent across sectors. 2,716 talent are registered on the NOGTR 2,176 are male while 540 are female. Domiciliation of international accrediting systems Institution Area of training International Certifications offered The Assessment and Training Centre Welding, Electricals, Plumbing and scaffolding City and Guilds (TASC)/Q- Sourcing American Welding Society through the Egyptian Welding Academy NEBOSH through SMT- UK OPITO through Servetec group SEAOWL/O-GAS Basic Driving, Heavy Goods vehicle driving, HSE British Safety Council IWFC- International welding certificate ISO-9001 Sun Maker Energy QHSE, Practical training (welding, drilling. NEBOSH Social Pipelines), Oil and Gas Engineering Essentials and OPITO investment Oil and Gas Management. City & Guilds International association of Drilling Contractors(IDAC) International Well Control Forum Uganda Petroleum Institute Kigumba Petroleum technical training City and Guilds Ongoing - OPITO - ECITB Local Enterprise development Peer to peer experience sharing Visibility of Ugandan suppliers through the National Supplier Data base Information dissemination on opportunities to more than 1000 enterprises Peer to peer experience sharing and learning through PAU supplier development dialogues GIZ/SOGA training of companies in HSE management E360 training of 40 companies in international bid management practices Posting of upcoming opportunities on PAU website E360: Bid management training Stanbic Bank business Incubator Community Content “local local content” . IOC scholarships directly targeting the local communities (Primary to University) . Specific Technical Training Scholarships in preparation for the expected workforce (40 CNOOC, 200 TOTAL) under cost Recovery . Agriculture Development Program( Hoima, Kukube, Buliisa, Nwoya). Community Engagements ( Quarterly Supplier Forums). Moving training programs closer to the community (St Simons/TASC, Pakwach training –Solid Rock) . Priority in Employment especially at the Technical level Other Capacity Building initiatives Social investment Skills Development Training of technicians( over 700) Training of trainers- Instructors( 50) Scholarships to undertake post graduate programs ENHANCING SECTORAL LINKAGES WITH OIL AND GAS SECTOR Education sector Define and build a pool of manpower requirements of the industry; both direct and indirect Agriculture sector Plan for the Influx of indirect and induced labour and to support communities to respond to agriculture opportunities. Transport 8.8 million tonnes of equipment will need to be transported to the two main oil and gas projects of Tilenga and Kingfisher. This will provide significant demand for haulage and transport, freight forwarding, cargo insurance and opportunities for Heavy Goods Vehicle (HGV) Drivers and Machine Operators Health sector Direct demand by the projects for medical facilities and servicesInflux of indirect and induced labour ENHANCING SECTORAL LINKAGES WITH OIL AND GAS SECTOR Tourism Influx of project induced visitors to the region, improved road network and other utility services in the area like the second international airport and proximity to major tourist sites Housing sector Influx of project indirect and induced workers, several service companies setting up operating offices and bases Land use planning MLHUD is supporting physical planning and infrastructure development in the Albertine Graben OIL AND GAS SECTOR OPPORTUNITIES Over 161,700 jobs to be created Direct – upto 14,000 Indirect – upto 42,700 Induced – upto 105,000 Construction materials Equipment and machinery Transport and logistics services 1,500 HGV drivers 900 Lifting and earth moving Equipment operators Food supplies Medical facilities Accommodation including residential, Hotels, offices, warehousing Supportive infrastructure Permanent and Temporary Camps MONTHLY ESTIMATES FOR A 1000 MAN CAMP Other Foods Include 1. 4,600 trays of eggs Meats 2. 64 sacks potatoes Bacon (Sliced) Sausages – Beef 3. 768 pineapple Sausages – Pork Beef products like fillet, rumb steak, 4. 205 bunches matoke Chicken Products 5. 768 watermelon Fish/Sea Products. Lamb Products 6. 26 sacks rice / posho Lamb Products Smoked Ham- Honey Glazed 7. 1,280 kg tomatoes Whole rabbits Whole turkey 8. 512 kg mangoes Goat meat on bones 9. 1,280 kg onions Dry foods/ Brown flour 10.640 kg carrots Corn flour Porridge(millet) 11.256 heads lettuce Honey 12.1,280 bundles spinach Sweet corn Raisin 13.256 spring onions Red Cherries Yeast 14.Thousands of tonnes of meat Rice Cinnamon Coriander LINKAGES WITH EDUCATION This is driven by the manpower requirements of the industry; both direct and indirect Work force Skills Development Strategy and Plan (WSDSP) 2014 that highlights the existing capacity, the needs of the sector and the gaps to be addressed Over 700 technicians have been trained with support from different development agencies including
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