GETENERGY IN EAST AFRICA – JUNE/JULY 2016

Getenergy visited Uganda, Kenya, Tanzania and Mozambique ahead of our Getenergy VTEC Africa event in Dar

es Salaam on the 21-23rd

November. Here are some of the key findings from our meetings.

UGANDA

The Government leads, and is largely responsible for skills development related to oil/gas in Uganda,

supported by individual IOC initiatives. The recently formed Uganda National Oil Company (UNOC) will become

operational from the 1st

August 2016. This is an exciting time for Uganda’s oil industry, as momentum builds

with licence agreements due and the recently agreed Uganda-Tanzania pipeline due to start development at

the beginning of 2017. It is estimated by the Ministry of Education up to 30,000 skilled technicians and craft

workers will be required for the project.

The Ministry of Education is leading two major programmes in partnership with the World Bank – the

Albertine Region Sustainable Development Project and the Skills Development Project. The major focus is

technical and vocational skills development, and the Ministry is now urgently seeking international TVET

institutions to partner with two TVET institutions in Uganda to help build capacity. If you are interested in this

opportunity, please contact Virginia Baker at Getenergy, and Virginia will forward your information to the

Permanent Secretary.

Accreditation and certification of TVET programmes is another major priority to ensure graduates are

employable and meet industry standards.

CNOOC Uganda is currently focused on developing a national talent register – a database of what skills already

exist in country to identify skills gaps and has recently completed a database of local suppliers for supply chain

analysis. The Ministry of Energy and Minerals is currently forming a strategy for supply chain development,

supporting SMEs and entrepreneurs across the whole spectrum of industries in the oil/gas supply chain.

The IOCs, including Tullow Oil, Total and CNOOC are working with local institutions such as the Uganda

Petroleum Institute Kigumba (UPIK), Uganda Technical College Kichwamba and Makerere University.

KENYA

As in Uganda, vocational and technical skills development is the top priority, with the Government establishing

a significant number of new TVET institutions. The Principal Secretary of Vocational & Technical Training

explained how the Kenyan Government is encouraging industry to offer work placements and internships to

build hands-on, practical experience in preparation for employment. The Principal Secretary is also keen for

industry representatives to become assessors in training programmes, increasing employability of graduates

and creating a greater alignment between education, training and the industry.

The first meeting of the newly formed national content taskforce took place in Nairobi the same day

Getenergy visited, involving stakeholders from industry, NOCK and government. There is a need to form a

united strategy on local skills and supply chain development, and for roles and responsibilities to be

distributed. It is also crucial to involve the government at the local level, especially in Turkana where the major

oil/gas projects are located.

With four major universities in Kenya now offering courses in petroleum engineering, there is a danger of

creating a glut in the professional employment market – in fact it is already happening.

The Lodwar Vocational Training Centre (LVTC) has been established by Africa Oil, the Lundin Foundation and

Tullow Oil to improve the quality and quantity of skills across the Turkana county. A major challenge for the

LVTC has been to find enough local people that meet the entry requirements of the college due to low levels of

baseline education. Greater emphasis is therefore needed on primary and secondary level education and pre-

entry training.

The Commonwealth Association of Polytechnics in Africa (CAPA), a major partner of Getenergy, is focusing

efforts on building capacity of member institutions in nascent oil/gas markets. They have identified a major

problem in attracting young people to enter the teaching profession at TVET institutions. They are encouraging

their members to put greater emphasis on international outreach to encourage a greater number of regional

wide enrolments, and increased knowledge transfer, skills and cultural exchange.

CAPA is working on three new initiatives for its members. The first is to establish centres of excellence for TVET

training in East, West and Southern Africa and would like to invite institutions to contact them for more

information. The second is to set up student and staff exchange programmes between CAPA member

countries, and lastly to entrench competency based education and training (CBET) as a favoured approach.

TANZANIA

The 2015 Petroleum Act has set ambitious local content targets for both local workforce and supply chain

engagement in Tanzania’s gas sector. The newly formed Petroleum Upstream Regulatory Authority (PURA) will

be responsible for monitoring local content performance, and its board is currently under construction.

Negotiations are currently underway between the Government and IOCs on the Host Government Agreements

(HGAs), with significant consideration towards local content, though progress is slow.

There is a good level of coordination among stakeholders involved in skills and supply chain development,

including the LNG Consortium (BG/Shell, Statoil, Ophir Energy, ExxonMobil, Pavilion Energy), the Oil & Gas

Association of Tanzania (OGAT), VETA, VSO and the SOGA project led by GiZ, with a major emphasis on the

Lindi and Mtwara regions of Tanzania where the main LNG projects are located. The EPC community looking

to win contracts on the LNG project are starting to form skills and supply chain development strategy

proposals.

Getenergy met with the Minister of Energy, Hon. Dr Joyce Ndalichako on her return from parliamentary

sessions in Dodoma. The Minister explained that the importance of vocational training, specifically related to

the gas sector formed a large focus of the parliament discussions. The Minister’s priorities are now to link TVET

institutions with industry, and identify the skills gaps where investment needs to be injected.

Last November, the National Economic Empowerment Council (NEEC), part of the Prime Minister’s Office,

formed a dedicated department to oversee local content. NEEC implements national economic policy across

multiple sectors and their major partners include the African Development Bank, UNDP and the EU.

Recognising Tanzania’s gas sector has the potential for significant economic benefit across a number of

industries, the NEEC is currently working to link local companies with the IOCs, and identifying opportunities

and challenges for them to participate in the supply chain. They are currently seeking partners to help with a

situational analysis of the supply chain.

VSO have a number of programmes active in Tanzania, including the Enhancing Employability with Vocational

Training (EEVT), Youth Economic Empowerment (YEE) and Tanzania Local Enterprise Development (T-LED). The

EEVT programme has now been incorporated with SOGA and activities of the LNG consortium, and focuses on

delivering better education for employment across a number of oil/gas specific skills.

The SOGA programme is now diversifying to incorporate other industries, such as mining to widen the

opportunities for employment where transferable skills to oil/gas exist. This has been done in response to

project delays, and corresponding job creation delays in the gas sector.

A local supply chain register and assurance system is currently being developed by Achilles, and will act as an

integrated web portal for local companies and procurers. The system will be a means of ensuring procurement

standards are met, and will offer greater access to the oil/gas supply chain for local companies. It is around five

years away from being operational, and the biggest response from local companies so far has come from the

catering and hospitality industries.

A number of partnerships exist between the IOCs and local education institutions including VETA colleges in

Mtwara and Lindi, the University of Dar es Salaam (UDSM), Dar es Salaam Institute of Technology (DIT), Arusha

Technical College and the University of Dodoma.

MOZAMBIQUE

The current economic situation in Mozambique has driven a political will from the Government to progress the

LNG projects. A significant milestone in these developments will be FID on Eni’s FLNG project which is

expected by the end of 2016, if not before. Commercially, the main inhibitor to project development is finding

buyers for LNG. The main challenge being faced in terms of skills and supply chain development is the lack of

coordination among the IOCs and other stakeholders to form a joined up approach.

There is a considerable need for skills for both the construction and production phases of the Eni and

Anadarko LNG plants. A new training centre is planned in Pemba which will offer training on craft

skills/construction as well as technical skills, funded by the industry. Development is currently on hold, subject

to further progress with the onshore LNG projects. The offshore FLNG project will require a much smaller

skilled workforce, yet skilled local people will be required for operations and maintenance roles.

INP, the oil/gas regulator has a strong commitment to local skills development and sees the main challenge as

training and recruiting young people into the industry. They would like to contribute more to vocational

training.

CPI – the Investment Promotion Centre, promotes linkages between SMEs and large projects, PPPs and the

creation of national entrepreneurs and works closely with other government institutions such as INEFP and

PIREP. Mozambique’s gas industry is a priority sector, and CPI is working to link local SMEs with the major oil

companies. There is a real need to raise the technical capacity within local companies, and a challenge to

involve local communities in regions such as Cabo Delgado in the north of Mozambique where gas projects are

located, not just in Maputo. They have developed a database of local suppliers called SBX, but need to still

approach operators of the newly awarded blocks to get involved. The database has been developed as a

means of benchmarking and matchmaking. CPI’s linkage programme helps to build local capacity through JV

partnerships with international contractors.

The Anadarko-Universidade Eduardo Mondlane (UEM) Petroleum Engineering Masters programme is

flourishing, with the first 11 students successfully graduating earlier this year. There are currently 60 students,

and another 30 due to enrol (sponsored by Eni) making the programme the largest graduate programme in the

history of Mozambique, and is a real example of best practice in sustainable education capacity which could be

replicated elsewhere. A number of the recent graduates are now enrolled at NTNU in Norway on a PhD

programme who will build a new faculty at UEM. Eni is also running their Junior Professors programme, and

are currently training eight potential faculty for the geoscience department at UEM.

UEM recently successfully competed against eight other countries to host a regional centre of excellence in oil

and gas, funded by the World Bank. The Sasol led downstream Master’s programme is due to launch in August

2016.

Organisations such as Colleges & Institutes Canada (CICAN) are supporting education capacity initiatives in

Mozambique. CICAN is currently working in partnership with PIREP, developing curriculums which are more

aligned with industry to increase employability of students. Aberdeen City Council has recently signed an MOU

with Pemba, and with funding from the UK’s Prosperity Fund, Aberdeen Consultants and Adam Smith

International is designing a blueprint for the development of Pemba. In Tanzania, Aberdeen University has also

recently formed a partnership with UDSM.

The Director of TVET within the Ministry of Education identified building competency and knowledge of

teachers at TVET institutions as the biggest challenge. This will be a major focus over the next five years. 15

teachers are currently being trained, and a further 25 per year up until 2019.

DFID has a number of programmes in Mozambique, including JOBA – a skills for employment initiative that

supports the training market operations of the non-state training providers in Mozambique, for the benefit of

disadvantaged youth and women. A tender will also be put out this month (July 2016) for DFID’s Life Skills

Training Programme which seeks to improve ‘life skills’, for example HSE, punctuality, how to manage salaries,

of literate students.

GETENERGY AFRICA 2016

In all of our 50 meetings across these two weeks Getenergy received a huge amount of support and

enthusiasm for the Getenergy Africa 2016 meeting this November in Dar es Salaam. Senior representatives

from Government, industry and education in all Uganda, Kenya, Tanzania and Mozambique will be

participating fully in the meeting. For more information, please contact Virginia Baker on

virginia.baker@getenergyevent.com or +44 (0) 7408 809 852.