The discovery of oil and gas in Uganda has opened up new opportunities for economic growth and development, with local companies winning contracts worth over Shs748 billion in the last quarter.
As the country prepares to start commercial oil production, the Petroleum Authority of Uganda (PAU) is encouraging local companies to participate in the oil and gas sector.
According to PAU, local companies have been actively participating in the sector, with impressive results.
In the last quarter alone, PAU reviewed 37 Bid Evaluation Reports (BERs) worth USD 203.8 million (over Shs748 billion). Out of these, 16 Tier 1 BERs worth USD 103.4 million were awarded to Ugandan companies, with USD 92.1 million going to local firms.
Furthermore, 14 Tier 2 BERs worth USD 7.5 million were awarded to Ugandan suppliers, with USD 4.4 million going to local companies.
Additionally, 154 procurement contracts worth USD 11.2 million were assessed, with 79% of contracts and 75% of the value awarded to Ugandan companies or joint ventures.
According to Ernest Rubondo, the Executive Director of PAU, “Local participation is crucial in ensuring that Ugandans benefit from the country’s oil and gas resources.”
He notes that PAU encourages more Ugandan companies to participate in the sector, as it presents numerous opportunities for economic growth and development.
Why Participate in the Oil & Gas Sector?
Participating in the oil and gas sector presents numerous benefits for Ugandan companies, including:
Job Creation
The oil and gas sector has the potential to create thousands of jobs for Ugandans, both directly and indirectly.
Economic growth
The sector is expected to contribute significantly to Uganda’s GDP, with estimates suggesting that oil revenues could reach USD 2 billion per year.
Technology transfer
Participating in the oil and gas sector provides Ugandan companies with the opportunity to acquire new skills and technologies, which can be applied in other sectors.
Diversification
The oil and gas sector presents an opportunity for Ugandan companies to diversify their operations, reducing dependence on traditional sectors.
In a nutshell, the oil and gas sector presents a unique opportunity for Ugandan companies to participate in the country’s economic growth and development.
With the sector expected to contribute significantly to Uganda’s GDP in the near future, it is essential that local companies take advantage of the opportunities available.
As PAU continues to promote local participation, Ugandan companies are encouraged to take the leap and participate in the oil and gas sector so as not to miss out of the various investment opportunities in the sector.