AMJD Volume. 8, Issue 3 (2018)

Contributor(s)

ROGERS BARIGAYOMWE (Ph.D)
 

Keywords

local content interest Government Oil and Gas Exploration Capacity Building
 

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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