Uganda’s promising oil and gas sector is urging its local businesses to unite and innovate through joint ventures, recognising this as a critical strategy to unlock their full potential and secure lucrative contracts in the highly competitive industry.
This call came from the Petroleum Authority of Uganda (PAU) during a supplier development workshop held in Hoima on Monday, July 14, 2025, highlighting both the immense opportunities and persistent challenges for Ugandan firms.
Ms. Vivienne Nabbosa, PAU’s National Content Officer in charge of Contracts, addressed over 60 Ugandan entities, acknowledging that limited financial and technical capacity continues to hinder local companies from securing high-value oil and gas contracts.
“Where local suppliers lack either technical or financial capacity, Regulation 9(2) of the Petroleum (Exploration, Development and Production) (National Content) Regulations, 2016 encourages them to form joint ventures,” Nabbosa stated.
These partnerships, she explained, could be with other Ugandan firms possessing complementary strengths or with non-Ugandan companies offering crucial technical expertise and financial backing.
The PAU emphasised that these collaborations are vital for fostering knowledge transfer, building robust local capacity, and maximising Ugandan participation in petroleum activities, aligning directly with the national content promotion goals.
Tier One Contractors Champion Local Empowerment
The workshop, themed “Enhancing the Capacity of Community Suppliers to Meet Industry Standards,” was organised by COSL Uganda SMC Limited, a Tier One contractor for both TotalEnergies and CNOOC Uganda, demonstrating a practical commitment to national content.
Mr. Xia Yu, the General Manager, COSL-Uganda, reiterated the company’s dedication to creating opportunities and fostering economic growth by ensuring Ugandan businesses and professionals actively contribute to the industry.
“As of June 2025, COSL Uganda had awarded contracts valued at over USD 93.9 million to 67 Ugandan companies,” Mr. Xia announced, showcasing a clear commitment to local engagement.
He added that COSL aims to further increase the participation of Ugandan firms, particularly community-based enterprises, in the second half of the year, while prioritising knowledge and technology transfer through training programs, graduate traineeships, and internships.
Echoing this sentiment, Ms. Melidah Mirembe, National Content Coordinator at TotalEnergies E&P Uganda (TEPU), highlighted the transformative potential of partnerships.
She revealed that TEPU is actively implementing its Community Supplier Development Program (CSDP) across six primary project districts (Hoima, Buliisa, Kikuube, Masindi, Pakwach, Nwoya).
“This program, building on a 2022/2023 pilot, aims to strengthen the capability and competitiveness of community suppliers through crucial trainings in areas like Health, Safety and Environment (HSE) management systems, integrated management systems, regulatory compliance, and sustainability practices,” she noted.
Registration Challenges and Pricing Concerns
Despite these concerted efforts, a recent baseline assessment (December 2023-January 2024) of 1,325 community suppliers revealed significant gaps.
Ms. Allen Nzira from E-360, the firm implementing TEPU’s CSDP, shared concerning statistics saying, that only 13% of enterprises were registered with URSB, 14% had TINs, 7% were NSSF-enrolled, and a mere 3% were on the National Supplier Database (NSD).
The CSDP is actively addressing these foundational issues to enhance supplier capacity and create platforms for market linkages. TEPU’s engagement has already seen over 3,000 community suppliers contributing through its Tier 1, 2, and 3 contractors.
Pressing Concerns
However, a critical concern was raised by local suppliers regarding pricing structures. Mr. James Bukoya, General Manager of a Hoima City hotel, voiced the collective sentiment saying, “The prices being offered are not attractive. As you demand high standards, please also be willing to meet our price expectations.”
This highlights a persistent tension between industry standards and the economic viability of local firms.
The consensus from the workshop was clear; while significant progress is being made to localise the benefits of Uganda’s oil and gas boom, a robust and equitable framework, backed by strategic joint ventures, fair pricing, and enhanced institutional compliance, remains crucial to truly empower Ugandan businesses and ensure maximum national content realisation.