AUGOS holds dialogue to unlock local content opportunities in oil and gas
The Association of Uganda Oil and Gas Service Providers (AUGOS), an umbrella body that brings together service providers in the oil and gas industry, on March 28th and 29th, 2018 week hosted a Local Content Stakeholder Dialogue in partnership with Association of Tanzania Oil and Gas Service.
The event that was held under the theme, “Unlocking local content opportunities in the oil and gas sector” brought together various stakeholders in Uganda’s oil and gas industry.
The experts in the oil and gas industry tipped government on how to fully benefit from the local content by skilling Ugandans so as to make sure they partake in the oil and gas activities.
Local Content is the development of local skills, oil and gas technology transfer, and use of local manpower and local manufacturing.
Dr. Ernest Chu Nwapa, the pioneer Executive Secretary/ CEO of the Nigerian Content Development and Monitoring Board (NCDMB), in a key note presentation delivered at the Oil and Gas conference said, “The measurement of local content is how many people you have employed and how many additional years and new skills you have added to the people. Therefore, how much are you doing to change the bulk of the people.”
And as such he said in order to benefit from the Oil and gas activities, there is need to use legislation in a friendly manner. Building infrastructure without people who will use it becomes useless and the country doesn’t progress. He said attention should be paid to towards skilling people.
He said since 1956 when commercial oil exploration commenced in Nigeria, till early 2000, the Nigerian Oil & Gas industry had not made a substantial trickledown effect on its economy, especially in its contribution to GDP.
Mr Nwapa who prioritized local content for the Nigerian Oil and Gas industry, said Uganda has a lot to learn from the Nigerian experience. “Local content commitments need to be negotiated in the contracting process and agreements included in the contract,” he said.
He said refining and LNG projects by Uganda and Tanzania should position service providers for similar projects in E. Africa. He advised them to focus on building skills, capabilities and a “we can do it” culture to change national orientation.
Mr Peter Lokeris, the minister of state for energy at the Ministry of Energy and Mineral development while opening the conference said achieving local content in Uganda’s oil sector will require concerted effort of all institutions like banks, schools, insurance, private oil companies, tourism, and environmentalists.
Prof. Charles Kwesiga, the chairman of the Association of Uganda Oil and Gas Service Providers (AUGOS), said the dialogue comes at a key stage as the country moves from oil exploration stage to development and production. This stage is estimated at approximately 20 billion dollars, peaking after 5 years.
