The 10th Energy Convention, themed “Integrating Oil, Gas, and Renewable Energy for a Sustainable Future,” has highlighted several investment opportunities in Uganda’s oil and gas sector.
The convention, now in its second day at Serena Hotel Kampala, has brought together industry experts, investors, and stakeholders to explore the potential of Uganda’s energy sector.
Transformative Journey
According to Hon. Sidronius Okaasai Opolot, the Minister of State for Energy, Uganda’s economy is on a transformative journey due to the investment opportunities in the energy sector.
The Minister noted that the oil and gas projects, including the East African Crude Oil Pipeline, the Refinery, and the Upstream (Tilenga and Kingfisher) projects, are unlocking significant socio-economic opportunities.
“These developments are creating thousands of jobs, stimulating local enterprise, and positioning Uganda as a key player in the regional and global energy market,” Minister Okasaai said at the convention.
Job Creation and Local Enterprise
The convention highlighted the job creation potential of the oil and gas sector, with over 16,000 people directly employed, 90% of whom are Ugandans. The sector has also stimulated local enterprise, with contracts worth over US$ 2.1 billion, with 29% of US$ 5.3 billion awarded to Ugandan companies. Additionally, over 35 joint ventures or partnerships have obtained contracts worth US$ 300m.
Local Content
The convention emphasised the importance of local content in the oil and gas sector. It was observed that companies based in the host districts have been awarded contracts worth US$ 19 million, demonstrating the sector’s potential to benefit local communities. According to the Petroleum Authority of Uganda (PAU), Ugandans occupy 63% of management positions, 93% of technical positions, and 98% of support positions in the sector.
Indirect and Induced Employment
The sector’s impact on employment extends beyond direct employment. The convention heard that indirect employment in the sector is estimated at approximately 35,000, while induced employment is estimated at approximately 100,000. This demonstrates the sector’s potential to create jobs and stimulate economic growth beyond the oil and gas industry itself, which reiterates Hon. Okasaai’s remarks.
Investment Opportunities
According to Okasaai, there are several investment opportunities in Uganda’s oil and gas sector, including:
Upstream projects: The Tilenga and Kingfisher projects offer opportunities for investment in exploration and production.
Refinery: The construction of a refinery in Uganda offers opportunities for investment in refining and petrochemicals.
East African Crude Oil Pipeline: The pipeline project offers opportunities for investment in transportation and logistics.
In a nutshell therefore, the 10th Energy Convention has highlighted the significant investment opportunities in Uganda’s oil and gas sector.
With its potential for job creation, local enterprise, and economic growth, the sector is poised to play a key role in Uganda’s economic development.
As the country continues to develop its energy sector, it is essential to ensure that the benefits are shared equitably among all stakeholders.