Ugandan companies have won more than US$2.2 billion in contracts in the country’s oil and gas sector, the Petroleum Authority of Uganda (PAU) has confirmed, highlighting a significant increase in national participation since the development phase began.
Since the start of oil development, licensed operators have submitted over US$7 billion worth of contracts for approval, with more than 30 percent awarded directly to local firms providing services in civil works, logistics, engineering, construction materials, catering, health and safety, and manpower supply.
This represents a major leap from earlier stages when Ugandan firms secured fewer than 10 percent of contracts.
The impact extends beyond contracts. Nearly 20,000 Ugandans are now directly employed in oil and gas operations, while over 180,000 benefit indirectly through related sectors such as transport, agriculture, security, manufacturing, and hospitality.
Ugandans occupy 64 percent of management positions, 85 percent of technical roles, and 99 percent of support jobs, demonstrating the country’s commitment to leading critical industry functions.
Uganda has invested heavily in skills development, spending over US$21 million to train more than 13,000 nationals in internationally certified skills, including welding, electrical engineering, health and safety, mechanical maintenance, and heavy goods vehicle driving.
Many trained professionals are already working on the Tilenga and Kingfisher projects.
Opening the 6th Annual National Content Conference, State Minister for Energy Opolot Okasai said Uganda is entering a new era: “Uganda is making a historic shift from infrastructure development to the production phase.
"With 6.65 billion barrels of oil in place, 1.65 billion of which are recoverable, production is expected to reach 230,000 barrels per day, positioning Uganda as a mid-tier oil producer in Africa.”
Minister Okasai emphasized that long-term national benefit depends on building resilient institutions and enterprises capable of sustaining prosperity beyond the oil fields.
Petroleum operations are projected to continue for 20 to 25 years, with annual operating expenditures exceeding $8 billion, offering continued opportunities for Ugandan firms in maintenance, ICT, manufacturing, chemicals, specialized engineering, machining, and equipment supply.
Despite progress, challenges remain. PAU’s Director of Economics and National Content Monitoring, Peninah Aheebwa, cited delayed payments, abuse of joint ventures, and qualification disputes as obstacles to local participation.
She noted PAU’s ongoing interventions, including contractual dispute resolution and monitoring compliance with national content regulations.
Aheebwa also highlighted the forthcoming National Content Fund, which will provide affordable and patient capital to ease financial pressures on local firms.
As Uganda approaches First Oil, the awarding of billions in contracts to local companies, extensive skills training, and sector-wide opportunities mark a pivotal step toward economic transformation, ensuring that oil wealth translates into long-term prosperity for Ugandans.
