Uganda’s oil and gas development and eventual production is set to see about $20bn invested in the country. This money will mainly be invested in putting in place required infrastructure to facilitate production of Uganda’s 6.5 billion barrels of crude buried in the Albertine Graben region, western Uganda.
This heavy and historic investment, according to Maurice Amogola, the Chief Executive Officer of Minet Limited, an insurance consultancy firm, presents a vast array of risks that if not insured can be disastrous and hamper the dreams of the country and the international oil and gas companies that have invested a fortune in the country.
In an interview with this website on Wednesday in Kampala, Amogola said while risks can be mitigated in various ways, insurance is very critical and oil companies, government and services providers cannot afford to ignore it. As a consultancy, Minet’s job is to discuss with clients about potential risks and suggest solutions by connecting client to suitable insurance firms to take the risk.
Amogola said in the advance of Uganda’s oil production, the market is preparing and insurance companies and Uganda Insurers Institute are training their personnel to understand the risks that might manifest in the oil and gas industry.
He explained that while the risks in the oil and gas industry are big and capital burdening, insurance firms can pool their resources together and spread the risk. “Companies that are here locally will be able to ensure local risks but the bigger risks and the liabilities that manifest will have to be shared with other international companies,”
“You will hear of companies like SwissRe, Alliance, UgandaRe, African Insurance Corporation, KenyaRe, PTA Insurance and others. All these organizations will share the risks that will come up in the oil and gas industry. We are taking our people through the processes.”
Minet, formerly Aon, is a consulting firm specializing in risk and human capital management. As the largest Aon Global Network Correspondent, Minet has access to a network spreading to 120 countries.
Minet is a well – known and trusted brand across many African markets. The rebirth of Minet marks an historic milestone in the Risk Advisory Industry. Minet is a Pan- African brand with an extensive African foot print, owned and led by Africans for Africans.
Minet and Aon will continue to have a close working relationship, which leverages Aon’s global expertise, strengthened by our local knowledge and experience. As Aon’s largest global network correspondent, Minet will be the partner of choice for businesses across Africa and continue to provide the same exceptional service to all clients across Africa.