Insurance broker MINET trains insurers on matters oil

Kampala, Uganda | JULIUS BUSINGE | Insurance broker Minet Uganda Limited in partnership with AON from the United Kingdom, conducted an oil and gas training aimed at equipping insurers with knowledge about oil and gas risks.

Around 40 insurance industry executives attended the workshop at Sheraton Kampala Hotel, the company said in a press release dated Feb.22.

The training comes at a time when Uganda is commencing the stage of development and construction of oil production facilities as the country eyes First Oil in two years time.

“Just like other potential support sectors, insurance companies in Uganda are doing all they can, both privately and under their various umbrella bodies to understand the oil industry as well as train their personnel to appreciate the risks that might manifest in this new market,” Maurice Amogola, Minet’s CEO said.

He added that the training would help local Ugandan insurers and reinsurers prepare themselves to ably cover the risks associated with the oil and gas sector.

Uganda’s oil and gas development and eventual production will see about $15billion to $20 billion invested in the country in the next 3 to 7 years in especially infrastructure like roads, an airfield, a refinery and an export pipeline.

This unprecedented investment in the country, according to sector experts presents a vast array of risks that if not well insured could be disastrous to not only Uganda, but also to the international oil companies and their suppliers.

A total of $4 billion has so far been invested in Uganda’s nascent oil industry.

Deepak Pandey, the CEO for Jubilee Insurance, a trainee welcomed the training programme.

“Like with any other market however, we have to develop and grow steadily with the economy,” he was quoted in the press release, adding “…while our capacity may look small now, the key thing is that we have to start from somewhere. This is why the government of Uganda is insisting on local content participation,” he said.