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Many Ugandans believe that the advantages of oil begin with the initial barrel extracted, mainly emphasizing a decrease in fuel costs at petrol stations.

This viewpoint raises the question about the start of early oil production, while ignoring the significant benefits already being achieved from oil through different channels including infrastructure growth, employment opportunities, financial compensation schemes, corporate social responsibility (CSR) activities by authorized companies, scholarships for oil-related education, vocational training programs, and, finally, tax income.

The finding of oil has contributed to reducing unemployment in the country by providing employment possibilities for many Ugandans, both directly and indirectly, including individuals from nearby areas.

More than 17,203 people are directly employed, with 89% being Ugandans and 5,273 from nearby areas. Of these, 63% hold management positions, 93% are working in technical roles, and 98% are part of support functions. Additionally, approximately 35,000 indirect jobs have been created, along with roughly 100,000 induced jobs. The workforce includes engineers, technicians, drivers, and cooks, among other roles.

Up to 10,571 Ugandans have been hired by TotalEnergies Exploration and Production Uganda, together with its subcontractors, making up 99.3% of the overall project staff. Out of these, a high of 3,719 people (35%) are Ugandans from the host communities in Buliisa, Nwoya, Pakwach, Hoima, Masindi, and Kikuube districts. It is significant that 16% of the Ugandan employees are women.

The building of roads in the Bunyoro area has started following the finding of oil. Major transport corridors for oil in the Albertine Graben have been created, such as the 54 km Masindi-Biiso Road in the Masindi region, the 111 km Hoima-Butiaba-Wanseko road that connects the Hoima and Buliisa areas, the 93 km Buhimba-Nalweyo-Kakumiro-Mubende roads linking Mubende with the Kibaale district, and the 80 km Masindi-Bugungu route that goes through Murchison Falls in the Masindi district, near Murchison Falls National Park.

These roads are built to support oil production, which is set to begin in the early part of next year, helping to improve the efficient transport of individuals and cargo. The system includes around 700 km of paved roads that connect the oil-producing area, which passes through environmentally vulnerable zones, to the rest of the country, thereby boosting trade and transportation overall.

I had the opportunity to travel along these routes during a field visit for media editors to the operational sites of the oil and gas sector, including the Tilenga project in Buliisa and Nwoya, the Kingfisher oil field in Kikuube District, Kabalega International Airport in Hoima, and the East African Crude Oil Pipeline Project (EACOP) in Kakumiro district. I was truly impressed by the progress made on the roads.

Within the field of capacity development, more than 14,000 people in Uganda have received training and certification in different areas of the oil and gas industry, including welding, health, safety, and environment; operating heavy goods vehicles; and constructing scaffolding, to name a few. Additionally, 14 organizations throughout the nation have acquired international certifications. Thirteen Ugandans have obtained global experience by working with other TotalEnergies branches around the world, such as in the USA, Africa, Europe, and Asia.

Over 1,600 individuals from Uganda have completed training and obtained certification in various technical skills, such as driving heavy goods vehicles, constructing scaffolding, working at elevated heights, performing coded welding, conducting quality control inspections, carrying out non-destructive testing, and receiving HSE instruction.

This is evident in the oil fields, where qualified Ugandans work in positions like engineers, safety managers, and procurement officers, to name a few. A worker from the Tilenga project provided information about their training in France, mentioning that after finishing the program, they go back to Uganda and serve a one-year probationary period before being officially appointed to their roles.

In conclusion, there has been significant increase in the number of Ugandan companies participating in oil projects, with more than 240 Ugandan vendors working with TotalEnergies EP Uganda at their highest point.

These firms provide a range of general goods and services, including camp management, staffing, medical requirements, training, and advisory support.

Moreover, some provide unique products and services such as engineering design, technical research, and building projects.

A total of USD 31.3 million worth of products and services have been obtained from vendors in local communities, covering fresh food, lodging, building materials, catering, conference spaces, and minor equipment.

With the progress achieved so far, including the discovery of oil and the anticipated start in 2026, Uganda’s prospects for growth through oil exploration appear encouraging.

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Tagged: Uganda, Governance, Economy, Business and Finance, East Africa

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