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East African Crude Oil Pipeline Set to Create 14,000 Jobs

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louis Buyisiwe

Mar 13, 2024

Oil sector Uganda

The imminent commencement of the East African Crude Oil Pipeline (EACOP) project promises to bolster employment in Uganda's burgeoning oil and gas sector. Petroleum Authority of Uganda's Kenneth Peter Bintu revealed an anticipated surge in job opportunities, with the workforce expected to increase from the current 13,067 to 14,000. Remarkably, 90% of these positions are held by Ugandans, underscoring the sector's commitment to local employment.

Recent years saw the sector's employment peak at 13,800, but minor reductions occurred due to scaling down of activities. Nonetheless, the EACOP's initiation signals a revitalization, with the project being a collaborative endeavor among the Governments of Uganda and Tanzania, Total Energies, and China National Offshore Oil Corporation (CNOOC).

Investments totaling $7.1 billion have already been infused into the sector, with Ugandan contracts worth $1.9 billion.

This significant financial input highlights the project's substantial economic impact.

Local communities, especially in the Bunyoro region, are encouraged to seize this opportunity by acquiring necessary skills and registering with the National Suppliers Database (NSD) to access business prospects in the sector. Last year, 544 local companies received training under the African Development Bank-funded FAPA project, preparing them for participation in oil and gas developments.

CNOOC's Eric Jumba emphasized the critical role of quality in securing supply contracts within the sector, indicating a stringent adherence to standards.

Current progress includes the advancement of the Kingfisher development project's procurement and construction components, with notable achievements by local company Excel Construction Limited in drilling efforts.

As the sector gears up for significant developments, including the construction of the EACOP and the initiation of the Tilenga upstream oil projects, the focus remains on harnessing local potential in health, transport, hospitality, security, and supplies, ensuring broad-based benefits from Uganda's oil and gas resources.

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