By Deep Earth
As Uganda edges closer to first oil production, industry attention is beginning to shift from construction-heavy activities to the more technical demands of long-term production.
This transition, experts warn, will fundamentally change the nature of jobs, services, and opportunities available to Ugandan service providers; which calls for an urgent rethink of strategy.
The field development phase has employed 14,000 to 20,000 workers to build central processing facilities, well pads and lay pipelines for the flagship projects including Tilenga, Kingfisher and the East African Crude Oil Pipeline (EACOP).
In addition, more than 180,000 Ugandans are in indirect or induced employment in activities related to the sector.
However, once oil production starts, which is projected for the second half of 2026, many operations will be automated, requiring a smaller workforce of about 3,000 people with far more specialized technical expertise.
Roles will increasingly revolve around production and process engineering, advanced maintenance, reservoir monitoring, data analytics, and long-term optimization.
“Ugandan companies are going to need to change focus. The opportunities will still be there, but unfortunately the skills required during exploration and infrastructure development will not be the same skills needed during production,” says Jimmy Mugerwa, Project Director at the Industry Enhancement Centre (IEC),
He notes that future contracts will increasingly demand advanced maintenance capabilities – particularly Level 4 and Level 5 services – which typically require close links to original equipment manufacturers (OEMs).
“Level 1 maintenance is visual checks and basic monitoring. Levels 2 and 3 involve routine repairs. But at Levels 4 and 5, you need OEM representation, proven experience, and modern workshops. That experience is where many Ugandan companies are currently lacking,” he says.
Energy Minister Ruth Nankabirwa (in driver’s seat) launched Excel Construction’s civil works at CNOOC’s Kingfisher oil fields in February 2022
While opportunities in logistics, catering, security, construction, and camp management will continue, they will be fewer than during the development phase.
To circumvent this challenge, Mugerwa wants to see Ugandan service providers entering joint ventures with highly experienced and better capitalized foreign companies.
“60% of joint ventures formed during the exploration phase failed due to poor structure and unrealistic expectations. So at the IEC we have introduced joint venture management training in collaboration with leading law firms to help local enterprises enter functional partnerships going forward,” he said.
ABMAK Associates is one company that has enjoyed success on that front, partnering with internationally renowned law firms like Clifford Chance to offer legal solutions to the likes of TotalEnergies, EACOP, Heritage Oil and the refinery development project.
Hakim Muwonge, a partner at ABMAK warned local companies eying JVs against misaligning their expectations, inconsistent delivery, poor communication and lack of transparency.
Mugerwa pointed out that “the time is now for those eying JVs. Expressions of interest (EOIs) for the production phase are already being advertised. We must avoid being caught unprepared, as happened during the exploration phase.”
He also highlighted emerging downstream opportunities, particularly around the Uganda National Oil Company (UNOC) and the planned refinery, which will open doors in petrochemicals and related industries.
The energy transition campaign was another area that promises prospects, he added.
Importantly however, Mugerwa wants sector stakeholders to examine how local communities – that have provided the bulk of the temporary workers in the development phase – will continue playing a role in the production phase.
IEC Impact
Operated by the Zoramu Consulting Group – Invest in Africa joint venture, the IEC was launched in February 2024 specifically to prepare Ugandan SMEs for meaningful participation in the oil and gas sector.
It is mainly sponsored by TotalEnergies alongside CNOOC, UNOC and EACOP (recently), with support from PAU and the Energy Ministry; focusing on sharing industry information (like tenders), targeted training and deliberate enterprise coaching.
To date, the IEC has publicized over 350 business opportunities on its website, alongside other industry guidance materials.
By November 2025, the platform had recorded nearly 180,000 cumulative visits, with 86% of users reporting the information as highly relevant.
PAU ED Earnest Rubondo (R) presenting the National Content Partner of the Year award to IEC led by Mugerwa (2nd R) at the recent National Content Conference
The Centre has trained over 600 SMEs, with the first cohort of 305 set to graduate on December 16, 2025 after completing structured programmes covering bid and contract management, QHSE practices, certification requirements, technical competencies, human resource management and compliance.
Other areas of training include integrated management systems (IMS) and financial modelling. All trainings are free.
Another 200 enterprises are currently undergoing training – largely courtesy of the oil operators themselves and their Tier I contractors plus banks, the URA and the PSFU.
“We emphasize contract and project management, so that the SMEs price their services right. Underpricing has been a problem for many before,” said Mugerwa, who is also CEO at Zoramu.
Tracer studies show over 80% satisfaction among participating SMEs, many applying IEC bid management tools (like the bid library) to win contracts in other industries and even outside Uganda.
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