Training, a key component of

capacity building

The role of industry specific training in the East African upstream hydrocarbon industry

Background – who are Effective Training International?• Private company; specialist oil

and gas Health & Safety training provider, based in Co. Donegal, Republic of Ireland• OPITO, IRATA, RUK & GWO

accredited• Trading since 2008, now

Ireland’s leading oil industry training company• Experienced, flexible and

dedicated team• Actively looking for opportunities

to work with companies in East Africa

Potential size of East African oil and gas fields

East African Populations

Country population 2013projected population

2020

Ethiopia 95,045,679 118,396,876

Kenya 44,611,813 54,661,024

Madagascar 23,042,300 28,621,189

Mozambique 25,965,554 31,515,871

Tanzania 49,483,005 62,076,782

Uganda 37,828,742 49,009,258

How many people could be employed?• UK, 2011• 171,000 people employed

in the UK oil and gas sector • Around 7% of the

industrial workforce• 52,300 travelled offshore

to work• BUT: this is a mature

market (40 years)

• Kenya, 2020 projection• Population size will be

roughly similar to UK• 7% of projected industrial

workforce in 2020 = 165,000• Unlike UK the wells are

both onshore and offshore• New market, rate of

potential growth is an issue

Typical roles on an offshore rig

What jobs will be created?

Welders, accountants, crane drivers, divers, real estate sellers, electrical engineers, security guards, cooks, road engineers, banksmen, painter/blasters, HVAC engineers, medics, ballast engineers, helicopter pilots, gardeners, riggers, OIM, Toolpushers, roughnecks, recruiters, trainers, office managers, salespeople, estimators, shipyard repair crews, railway train drivers, mud loggers, scaffolders, mechanical designers, ships captains, taxi drivers, geologists, weather forecasters, HGV drivers, entrepreneurs, bankers, translators, and the list goes on……………………………….

Why is training necessary?

• To provide the oil companies with the trained labour force they require• Give well paid, long term jobs to indigenous people• Help to retain some of your most talented people in the

country• Advancement of individuals, companies and communities• Increased ’ownership’ of the countries natural resources• Improve the base levels of transferable skills which

benefits other sectors in the economy

Education vs. training: the challenges• Do EA countries need more education or training?• They need both – and quickly!• Let us consider ‘training’ as vocational education.• To fully engage with the oil industry jobs market the

workforce requires basic education, vocational training and/or further education• Secondary education levels are going to be an issues for

the region as countries seek to build human capacity • Technical institutes have a huge role to play in providing

the training necessary to meet oil industry demands

Current vocational training in Kenya

• Approx. 500 youth polytechnic schools in Kenya currently and more are being adding more rapidly• Danger of quantity ahead of quality• Technical training MUST be aligned with the markets

requirements!• A welder is just a welder – right?• Wrong – oil sector welders require specific training to meet

international performance standards• Vocational training is a stepping stone to oil industry

employment and must be aligned with oil industry needs

• Operating for more than 30 years, OPITO is an industry owned, not-for-profit, standard setting body

• Committed to improving Safety and Competence in the Industry • OPITO Standards are driven by the needs of industry through

industry workgroups, once standards are agreed they are delivered by the learning supply chain, this process is quality assured by OPITO.

• All OPITO-Approved training providers are audited annually by OPITO.

• All OPITO certificates are entered into the ‘Vantage’ database system, the Oil & Gas Industry can access ‘Vantage’ (on-line) to check authenticity of training records.

About OPITO

OPITO training centres

State vs. Private• Training Centres are necessary but somebody needs to

pay for them• Should this be the state or Private Sector?• Different models in other regions, no ‘right’ solution• PPP worth considering as an option• Vocational training centres are not expensive but are

vital

Specialist 3rd level education• The is a world shortage of university graduates in the oil

industry• It will be difficult for East African countries to rapidly

develop the necessary courses and attract faculty • Building links with existing universities in other regions

could be the best option for this regions premier universities• Technology advances are providing increasing numbers

of opportunities for graduates• The oil industry has a poor record of attracting

graduates – a chance for East Africa to show the way?

Full engagement with the oil sector

• Anything less than full engagement with the oil industry will reduce or even nullify the potentially positive effects of training for the country• The specific requirements of the industry need to

be understood by the decision makers in each country• That will happen only when both parties

communicate effectively. Listening is just as important as talking• Start that process now! The window of opportunity

is narrow and closing every day.

In summary……………• Oil changes countries• Capacity building in the oil industry sector and

its supply chain are key to the future of the countries in the East Africa region• Governments must fully engage with the sector

and develop policies which mesh peoples’ desires with industry requirements• There is a small window of opportunity which

should be grasped by all parties• Honesty, integrity and flexibility are precursors

to open communication and success for all concerned

Summary (continued)

• Secondary education levels are a necessary basic requirement• Industry specific as well as general vocational training

courses will be required to meet demand• OPITO accredited training facilities must be considered

as part of a wider training plan• Universities should start to build links with those outside

the immediate region and develop industry specific degree courses• The future is bright if governments and oil companies

aim for a ‘win/win’ and maximise the opportunities for both.

Thank you for your attention