International oil companies procured goods and services worth over $171m (Shs607b) from Ugandan firms between 2017 and 2020, the Petroleum Authority of Uganda (PAU) has announced.
According to PAU, this represents 37% of the money invested in the oil and gas industry in that period.
PAU says this demonstrates that Ugandans have benefited from the petroleum projects, refuting allegations that all contracts are being given to foreign companies.
“The PAU ensures that priority is given to Ugandan entities in procurement of goods and services. However, where Ugandan entities are unable to provide the goods and services, joint ventures between Ugandan entities and foreign companies are considered. International companies are only considered in the absence of both,” PAU said in a statement.
In June 2021, Mr Andrew Oluka, a Ugandan lawyer, filed a court case against the Petroleum Authority of Uganda (PAU) and two International Oil Companies (IOCs) operating in Uganda – Total E&P Uganda Limited and CNOOC Uganda Limited.
Mr Oluka alleges that the ongoing procurement processes for the oil and gas projects in Uganda are denying Ugandans economic rights to participate in the projects.
But PAU says calls for tender and expressions of interest issued by the IOCs emphasise the need for bidders to comply with National Content laws.
“PAU oversees the IOC procurement processes and assesses bid evaluation reports to ensure that the procurements meet the National Content requirements. Regarding the contract in question, the IOCs duly submitted the national content requirements, which will be strictly monitored by the PAU during implementation,” PAU says.