Uganda to restrict multinationals use of expats in oil sector
Posted on : Saturday , 5th September 2015
Dozith Abeinomugisha, assistant commissioner in the petroleum directorate at the Ministry of Energy and Mineral Development, told the newspaper that, basically, international oil companies (IOCs) would be banned from bringing expatriates into the country to occupy positions that qualified Ugandans can do.
"We have coordinated with the Ministry of Internal Affairs to ensure that no expatriate will get a work permit unless he or she has a recommendation from the Permanent Secretary in the Ministry of Energy and Mineral Development," he explained, adding that any expat recommendation would have to be personally signed by the permanent secretary.
Mr Abeinomugisha said that before an expatriate could get a work permit, firms would have to advertise the job locally. He added, "An expatriate's work permit will not be renewed. It is a policy we need to pursue."
The Observer reported, "In case there is no Ugandan qualified for the job, the permanent secretary will then allow the Ministry of Internal Affairs to issue a work permit to an expatriate for a specific time frame.
"After hiring an expatriate, an oil company will be required to train Ugandans so that, by the time the work permit expires, there are Ugandans qualified to take up the job. In addition, they will require the companies to submit a 'nationalisation' plan to the petroleum authority."
Such nationalisation plans will have to detail how Ugandans will gradually take over the management of companies' oil operations in the country. The IOCs will also have to submit annual plans for both local hirings and the procurement of goods and services.
Development of Uganda's oil and gas sector is increasing apace and is expected to peak at 200,000bpd with between 11,000-15,000 people directly employed.
There has been anger in the country over the large amounts of money paid to foreign consultants advising Uganda over the development of the industry in recent years.
Last year, the joint venture oil companies released the Industry Baseline Survey Report, which said that technicians and craftsmen would account for more than 60 per cent of the jobs being created in the sector, while engineers and managers would account for about 15 per cent. The remainder were said to be either semi-skilled or casual workers.
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