Ugandan businesses remain starved of technical and financial support to tap into the opportunities that the oil and gas sector will present.

In addition, Ugandan businessmen could also miss out on a chunk of the $8 billion that is expected to flow into the country in the next three years as the country prepares to become an oil producer in 2020.

This is the verdict that emerged during the April 25 to 27 oil and gas logistics convention held in Kampala. 

Estimates show that over 800,000 tonnes of equipment is expected to be transported to the Albertine oil region before 2020 and this presents opportunities for the local logistics industry to develop the capacity to supply the oil and gas sector.

There is an increased push for local content in Uganda’s oil and gas sector, but for this to happen, the local logistics industry has to build its capacity.

This, according to Uganda Chamber of Mines and Petroleum (UCMP), calls for joint ventures with regional and international players, as well as financial and technical support.

“How will local content happen without financing?” Asked Elly Karuhanga, UCMP chairman. “Then you talk of skilling Uganda, but you [the government] are deceiving investors! What skills have you given to workers?” He asked.

About 50 per cent of the expected investments towards first oil will be spent on logistics, with heavy equipment being moved to build the production infrastructure – a crude oil pipeline from Hoima to Tanga in Tanzania, the refinery in the Albertine Graben and a product pipeline from Hoima, terminating near Kampala.

In addition, Mr Karuhanga said over the next three years, oil companies will sink 400 wells to pump oil.

“Such an amount of work requires highly specialised human resources and equipment, including drivers and trucks to be able to beat the deadlines, with minimal mishaps, if any,” said Mr Karuhanga.   
UCMP vice chair Richard Kaijuka also weighed in, suggesting that there will not be “meaningful participation” for local companies in view of the short period of only three years, unless the government sets up a fund of about $100 million to prop up Ugandan suppliers.