Presentation delivered by Colin McLean at the second PIEA Upstream East Africa Summit in Nairobi, October 2013. The presentation is a look at the broad issues which challenge hydrocarbon industry growth in the region and the important role of training in tackling the problems.

1. Training, a key component
of capacity building
The role of industry specific training in the East African
upstream hydrocarbon industry

2. 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

3. Potential size of East African oil and gas fields

4. East African Populations
Country population 2013 projected 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

5. 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

6. Typical roles on an offshore rig

7. 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……………………………….

8. 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

9. 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

10. 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

11. • 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

12. OPITO training centres

13. 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

14. 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?

15. 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.

16. 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

17. 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.

18. Thank you for your attention