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Overview
What is local content What is the law in Uganda? Comparative analysis Uganda: Unpacking the upstream law Recommendations
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defined in the Upstream Act and Midstream Bill. The National Content Study recommended value addition in Uganda, by Ugandans in the oil industry, by the use of Ugandan materials, services produced by Ugandans and Ugandan firms, and the use of facilities in Uganda.
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"Ultimately the goal here is for Africa to build Africa, for Africans,
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Where the goods and services required are not available in Uganda, they must be provided by a joint venture company in which a Ugandan company has a share capital of at least 48%
Licensee to submit to the Petroleum Authority an annual report on use of Ugandan goods and services
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Regulations to prescribe the requirements for technology transfer of knowledge and skills
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Requirement
Licensee must submit to the Petroleum Authority a report of its achievements and those of its contractors and subcontractors in utilising Ugandan goods and services within 60 days after the end of each year Consequences of non-compliance - fine not exceeding UGX 2,000,000 or imprisonment not exceeding three years or both
55
Licensee must submit to the Petroleum Authority for approval an annual detailed programme for recruitment and training of Ugandans
Programme on technology transfer provided for in the Upstream Act applies
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Licensee must include clearly defined training program for its Ugandan employees including scholarships and other financial support for education.
Licensee must include a commitment to maximise knowledge transfer to Ugandans and to establish management and technical capabilities and any necessary facilities for work in Uganda Regulations to prescribe the requirements for technology transfer of knowledge and skills
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Comparatives: Kenya
Key legislation is the Petroleum (Exploration and Production) Act, (Chapter 308) Preference to employ and train Kenyans in petroleum operations and to give preference to use of products, equipment and services locally available Model PSC says that provided prices, quantities, quality and timelines of delivery are comparable with non-Kenyan nationals/suppliers Only Kenyan incorporated or registered companies may sign a PSA
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Comparatives: Nigeria
Key
legislation is the Nigeria Oil and Gas Industry Content Development Act, 2010
Nigerian Company oformed and registered in Nigeria in accordance with their Act and with 51% equity shares held by Nigerians Sets up Nigerian Content Development and Monitoring Board and the Nigerian Content Consultative Forum First consideration to be given to Nigerian independent operators, goods and services and to Nigerians in employment and training
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Comparatives: Ghana
Policy
First consideration to Ghanaian independent operators in award of oil blocks, oil field licences and in all projects for which contracts are awarded in Ghana oil and gas sector Bids with highest Ghanaian content to be preferred Non-Ghanaian owned entities to have 5% citizen interest in exploration and production activities Oil and Gas Business Development and Local Content Fund to support development of local capacity, education, training, research and development
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Comparatives: Angola
The concept of Angolanization
oCompanies should have a work force consisting of at least 70% Angolan nationals. oOil companies must submit an Angolanization plan to the Ministry of Petroleum annually, detailing how they plan to achieve their targets. Angolan companies benefit from preferential treatment in competitive tenders for services and goods if their bid is no more than 10% higher than the foreign bids
Company must have the majority share capital owned by Angolan citizens
The Minister publishes annually consumer goods of national production to be used in the services which support the oil activities.
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Examples: catering, pressure tests on oil and/or gas storage tanks and pipelines, transportation of equipment materials and foodstuffs or sounding and production platforms, supply of industrial and drinking water, supply of technical material, general cleaning and gardening, general maintenance of equipment and vehicles, operators and managers or supply points (air ports and service stations).
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Examples: Purchase and/or processing of geographical data, geographical or geodesic surveying, vertical directional and/or horizontal drilling of wells, geological control of drilling (mud logging), production tests, calibration of storage tanks and measurement instruments, construction and assembly of mechanical electrical structures and production and drilling installations, inspection and supervision of consignments of oil or natural gas, cargo transport of oil or natural gas, cement and drilling sludge products
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