Ugandans take over oil and gas operations

Uganda's rapidly expanding petroleum sector is now one of the country's largest providers of employment, with a total of 14,451 people directly employed, 90% of whom are Ugandans. This reflects the efforts being made to integrate the local workforce into the country's strategic oil projects, at a critical time when players in the sector are racing against time to meet the target of 2026, the date when the first volumes of oil should be brought to market.

Since the discovery of commercial oil and gas deposits in Uganda in 2006, the country has been actively preparing to exploit its resources. Ugandans have benefited from training abroad, particularly in countries where the oil sector is already mature, before continuing their apprenticeship locally. The aim of this training was to ensure that, from the start of commercial operations, a large proportion of the jobs would be filled by national talent. However, the delay in signing the Final Investment Decision (FID), which is required to officially launch the projects, has put the brakes on this ambition.

As a result of these delays, a large number of workers trained in the oil industry have been forced to move into other sectors, such as manufacturing, or have sought opportunities abroad. Nevertheless, the dynamic has changed, and today the Ugandan oil sector is on the verge of reaching a new level, with a very high rate of local integration.

Of the 1,403 people directly employed by the oil licence holders, 67% are Ugandans. This figure reflects the growing importance of the national workforce, but it is mainly the contractors and sub-contractors who are showing real local inclusion. These companies employ 13,399 people, 92% of whom are Ugandans, with 4,483 workers recruited directly from local communities.

This recruitment drive demonstrates the determination of both the industry and the government to include local people in this fledgling industry. The creation of jobs in local communities is crucial to the sustainable development of the oil industry in Uganda, contributing to an equitable distribution of economic benefits and a reduction in inequalities. The development of a local industrial fabric around oil is also a lever for strengthening Uganda's competitiveness in this key sector.

The Ugandan government is fully aware of the strategic role played by the oil sector in its future economic development. The country's current reserves are estimated at 6.5 billion barrels of oil, of which 1.5 billion barrels are considered recoverable. These reserves offer a unique opportunity for Uganda to become a key player in the African oil market, but they also require rigorous management to maximise long-term benefits.

The potential for economic transformation is immense. The oil sector could not only boost government revenues, but also generate investment in other economic sectors, including infrastructure, industry and vocational training. Ultimately, oil revenues could also play a crucial role in achieving the country's sustainable development goals.

Despite this progress, Uganda faces a number of challenges in managing its oil sector. On the one hand, local integration in the sector needs to be consolidated and expanded. It is essential to continue training Ugandan technicians and engineers capable of taking on increasingly specialised positions, both in the exploration and production phases and in the more technical aspects of engineering and resource management.

Furthermore, the exploitation of these resources must respect environmental standards and international commitments to combat climate change. As Uganda moves towards 2026, it is imperative to ensure that the management of oil resources does not compromise the local environment, particularly in ecologically sensitive regions such as the Lake Albert Basin.

The year 2026 will be remembered as the date when the first barrels of Ugandan oil will be exported. This target is forcing industry players to work at a fast pace to complete the necessary infrastructure, including pipelines and refining facilities. This is a strategic deadline not only for the industry, but also for the Ugandan economy as a whole. The realisation of this project could represent a real turning point for the country, propelling it onto the international stage as a significant oil producer.

Uganda's oil sector thus has a rare opportunity to transform the national economy and improve the standard of living of its citizens. However, this transformation will only be sustainable if it is accompanied by inclusive policies, rigorous environmental management and a long-term commitment to maximising local participation and skills transfer.