THE EXISTING LEGAL REGIME FOR LOCAL CONTENT IN PETROLEUM INDUSTRY IN UGANDA
Abstract:Local content in oil
and gas industry is generally recognized as an intervention by a national
government aimed at ensuring that the majority of the goods and services
required at each stage of the oil and gas value chain are locally supplied. For
instance, in the context of indigenous employment, local content policies
(“LCPs”) are about far more than securing an immediate increase in the
percentage of local employees. One issue of debate about countries that have
discovered rich natural resources, such as oil and gas, is whether such
endowments are no guarantee that the country’s economy and business life will
prosper. This does not prevent huge expectations from rising. Though many
countries have had studies on legal regime on local content the findings goes
to show that though government has taken care by involving local communities
through capacity building in the petroleum industry and there is still a great
need of sensitization. There are also limited measures in place to ensure the
country’s private sector and its entrepreneurs participate in oil and gas
activities. In line to this, the study explored the existing legal regime for
local content in petroleum industry in Uganda. The study concluded that capacity
building and industrial diversity is essential if Uganda is to reap the
benefits from huge endowments of oil and gas. The study recommends the
formation of a government institution to push the country’s local content
interest