Stakeholders in Uganda’s oil and gas sector have urged local contractors and suppliers to form partnerships and improve competitiveness in order to benefit more from the country’s multi-billion-dollar petroleum projects.
The call was made during a competitiveness and speciality works dialogue organised by the Uganda National Association of Builders, Suppliers and Engineering Contractors (UNABSEC) in Hotel Africana, bringing together contractors, suppliers and oil and gas sector players.
The dialogue focused on strengthening local contractors for increased participation in the oil and gas industry, improving competitiveness in high-value speciality works, unlocking opportunities in the oil and gas project pipeline, and scaling local enterprises through strategic financing, compliance and partnerships.
Godfrey Sselubiri, who represented the Permanent Secretary in the Ministry of Energy and Mineral Development, Irene Batebe, said Uganda’s oil and gas sector presents many opportunities but local companies must build capacity and competitiveness to benefit.
“Uganda's oil sector presents numerous opportunities but the challenge we have is not opportunities but how to build high-level competitiveness to take these opportunities,” Sselubiri said.
Stakeholders noted that partnerships in Uganda’s oil and gas sector are largely structured around joint ventures between international oil companies and the Uganda National Oil Company, which holds a 15 percent stake in key oil projects such as Tilenga and Kingfisher.
They also highlighted the importance of national content requirements enforced by the Petroleum Authority of Uganda, which has seen billions of dollars in contracts awarded to Ugandan companies.
Officials said regional cooperation is also playing a role, particularly in projects involving Uganda and Tanzania, including the East African Crude Oil Pipeline (EACOP), which runs through several districts in Uganda.
It was also revealed that micro, small and medium enterprises from districts along the pipeline route have signed memoranda of understanding with larger contractors working on the pipeline project.
The initiative is part of a training and business linkage programme implemented by the Petroleum Authority of Uganda in partnership with the African Development Bank to help local enterprises participate in oil and gas supply chains.
Stakeholders at the dialogue emphasised that improving technical capacity, forming joint ventures and ensuring compliance with industry standards will be critical for Ugandan contractors to secure more high-value contracts in the oil and gas sector.