Uganda’s flourishing oil and gas sector, with its projection of first oil production by June 2026, is not just about extracting resources; it’s about driving the nation’s broader socio-economic transformation agenda.
At the forefront of ensuring that this vision becomes a reality is the Uganda National Oil Company (UNOC), which is driving an aggressive agenda to maximise local content and ensure Ugandan companies are not just participants, but beneficiaries and drivers of growth in the oil and gas sector.
During the UNOC supplier development workshop held today at the Sheraton Kampala Hotel, Samantha Muhwezi, the Chief Operating Officer of UNOC, reiterated the company’s unwavering commitment to fostering meaningful participation by Ugandan enterprises in all facets of oil and gas activities.
“UNOC is intent on ensuring value beyond the sub-sector. Oil and gas are crucial for Uganda’s social-economic transformation,” Muhwezi stated.
She highlighted the government’s strategic plan to leverage petroleum revenues for widespread national development, including investments in infrastructure, education, and healthcare.
Uganda’s Amazing Oil Journey
Uganda’s oil and gas journey, which began with commercial discoveries in 2006, is now entering its critical development and production phase.
With flagship projects like Tilenga and Kingfisher progressing, alongside the construction of the East African Crude Oil Pipeline (EACOP) and a planned refinery, the opportunities for local businesses are immense.
Muhwezi revealed that the government set robust local content regulations through the Petroleum (Exploration, Development and Production) (National Content) Regulations, 2016 and the National Local Content Bill, 2019, to ensure Ugandans benefit directly.
Pathways from UNOC for Ugandan Companies
To guide Ugandan companies seeking to tap into these opportunities, Muhwezi outlined several key tips at the workshop, designed to enhance their readiness and competitiveness. They include but are not limited to the following;
Understand the Project Landscape
She advised that companies must thoroughly grasp the phases and scope of UNOC projects. This, according to Muhwezi, requires proactive engagement through various platforms and fora, including the UNOC website, the Uganda Oil and Gas Summit, the East Africa Petroleum Conference, and dedicated Local Content Conferences.
She underscored the fact that staying informed about upcoming tenders, project timelines, and specific service requirements is paramount.
Register on the National Supplier Database
This, Muhwezi stressed, is a mandatory and critical first step. She explained that the National Supplier Database (NSD), managed by the Petroleum Authority of Uganda (PAU), is the official register of entities interested in providing goods, works, and services to the oil and gas sector.
“Companies must be registered and verified on this database to be considered for opportunities,” she said, adding, “The NSD is accessible online at https://lnkd.in/dm6GcDWj.” She stressed that as of December 2023, the NSD comprised 2,947 successfully verified entities, with 2,340 being Ugandan.
Leverage National Content Opportunities
Muhwezi also revealed that Ugandan companies are encouraged to actively pursue the services and goods that are ring-fenced for local providers.
For opportunities beyond the ring-fenced scope, she noted, companies are urged to form joint venture partnerships with local or international companies.
This strategy, according to Muhwezi, is vital for enhancing capacity, acquiring expertise, and meeting the stringent standards of the industry.
The local content framework specifically encourages partnerships where a Ugandan company holds a minimum interest of 48% in a joint venture for non-ring-fenced services.
Invest in Capacity Building and Certifications
She explained that the oil and gas sector demands high levels of competence and adherence to international standards and best practices.
As such, companies must invest in building the capacity of their personnel, ensuring they attain the relevant certifications. This, she pointed out, includes technical skills, health, safety, and environmental (HSE) standards, plus project management expertise.
Ensure Regulatory Compliance
The oil and gas industry is heavily regulated, and because of this, Muhwezi pointed out that Ugandan companies must meticulously comply with all policies, rules, and regulations governing the sector, including environmental impact assessments, labour laws, and financial reporting standards. This is because non-compliance can lead to severe penalties and exclusion from opportunities.
Innovate to Offer Solutions
The sector constantly seeks efficiency and improved compliance. Muhwezi thus encouraged all the companies to invest in innovation, developing and offering solutions or services that address industry challenges, enhance operational efficiency, and meet evolving regulatory demands.
As Uganda anticipates its first oil in June 2026, the focus remains firmly on ensuring that this new era of resource wealth translates into tangible benefits for all Ugandans.
Through strategic guidance and strong emphasis on local content, UNOC is empowering Ugandan companies to be active players in, and not just observers of, this transformative oil journey.