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MTN Uganda bets on Oil and gas to grow data, voice revenues

Containers with rig equipment being loaded in Yantai Port last year

Uganda is setting up numerous infrastructure projects including pipeline, oil processing facilities and airport among others for its nascent oil and gas resources ahead of production

Kampala, Uganda | THE INDEPENDENT | MTN Uganda is positioning itself to harness the opportunities presented by the oil and gas sector with substantial investments in latest technologies to drive digital solutions and bolster its revenues, particularly from data services.

Speaking at the Uganda International Oil and Gas Summit held at the Kampala Serena Hotel on Nov.22, MTN Uganda CEO Sylvia Mulinge said as part of the company’s Ambition 2025 Strategy to provide ICT solutions for various businesses, it has made substantial investments in infrastructure, focusing on real-time data transmission and continuous monitoring of essential processes in oil and gas exploration, extraction, and distribution.

“…. the oil and gas sector stands as one of the most technologically advanced sectors globally, relying extensively on cutting-edge technology to revolutionize exploration, extraction, and operational efficiency,” She said.

“In this evolving world of technology, the telecom industry is like the crucial piece holding everything together, offering essential support to the oil and gas sector. And this is where MTN Uganda steps in.”

Mulinge said the company has provided two mobile broadband tower services to oil operators such as Total Energies to offer critical wireless access for remote monitoring of drilling progress.

She said the company has erected over 70 mobile telecom masts in key oil and gas areas, including Tonya, Nalweyo, Bullisa, Hoima, and Hoima Town to ensure effective connectivity and operations.

This year alone, Mulinge said four new sites were commissioned to enhance connectivity in Tangi, Tilenga, Kisinja, and Bullisa.

She said the company has also installed 16 Microwave links supporting various oil customers at strategic locations to ensure high-speed wireless connectivity, facilitating seamless voice, video, and data information exchange between critical locations such as Kingfisher, Bugungu, Buliisa, Kabaale Hub Pumping Station, Kisinja, Main Camp & Pipe Yard, Main Camp, Temporary Base Camps, and Tilenga Central Processing Facility.

“In terms of our Fiber footprint, we’ve established a total of 190KM of fibre infrastructure along Buliisa – Ngwedo-Bugungu-Paraa-Pakwach, with an additional 47km of fibre distributed in Buliisa,” She said.

Mulinge said as MTN evolves into an ICT company in alignment with its Ambition 2025, the company has secured valuable partnerships, including certification as a Microsoft Partner. This certification, she said, empowers the company to provide modern work solutions and other cloud suite services to enterprises of all sizes.

She said collaborations with industry leaders like Cisco and Galooli further enhance the delivery of high-quality unified communication services and customized Internet of Things solutions tailored to the unique demands of the oil and gas sector.

Currently, Ugandan and partners are setting up numerous infrastructure projects including the pipeline, oil processing facilities and airport among others for its nascent oil and gas resources ahead of production slated for 2024/25.

Future investments

Looking ahead to 2024, Mulinge said the company has ambitious plans to enhance connectivity further. She said two additional telecom sites and 150km of fibre around Kabaale International Airport are on the horizon.

She said the company is also gearing up to activate 5G technology, supplementing existing 2G, 3G, and 4G technologies around key base camps such as Tangi, Bugungu, Buliisa, and Tilenga.

This development, she said, will go hand in hand with the company empowering local communities and fostering sustainable development.

“Through the MTN Foundation, the company has supported health and economic empowerment initiatives in the oil region, contributing to the well-being and skills development of the local population,” she said.

Last year, the Uganda Securities Exchange-listed company recorded a 19.3% growth in profit after tax to Shs 406.1bn for the year ended December. 31, 2023 riding on the growth in data and fintech services.

Data and fintech revenues grew by 24% and 24.9% to Shs511.3bn and Shs 656.1bn, respectively, on account of increased users. Voice revenues, though, contributed 44.2% to total service revenue, recorded a marginal decline of 0.5% during the period under review.

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