Ugandan firms urged to prepare for oil production phase

KAMPALA, December 3, 2025 — Government and industry leaders have called on Ugandan enterprises to position themselves for the massive economic opportunities expected in the production phase of Uganda’s oil and gas industry. The appeal was made during the opening of the 6th Annual National Content Conference at Mestil Hotel, Kampala.

With Uganda transitioning from infrastructure development to actual production, officials said the next two years will define how much value local companies capture from the country’s long-awaited oil age.

Officiating at the event, State Minister for Energy Hon. Okasai Opolot said Uganda is entering its most economically significant stage since oil exploration began nearly two decades ago.

He noted that with an estimated 6.65 billion barrels of oil in place—of which 1.65 billion barrels are recoverable—and a future production capacity projected at 230,000 barrels per day, the country is set to become a major mid-tier African oil producer.

“Now is the time for Ugandan enterprises to prepare for long-term participation,” Hon. Okasai said, emphasizing that the real success of the sector will depend on empowering local companies and building the skilled workforce needed for sustained production.

He added that national content must translate into resilient institutions and competitive Ugandan firms that can support the sector beyond the extractive period.

Petroleum Authority of Uganda (PAU) Executive Director Ernest Rubondo told delegates that First Oil is expected in the second half of 2026, making enterprise readiness a matter of urgency.

Rubondo highlighted the stages of First Oil—from initial production, to delivery at Kabaale in Hoima, and eventual export through Tanga, Tanzania—and outlined key commercial opportunities that Ugandan firms should target.

According to PAU, domestic companies should prepare to supply:

• Support services and maintenance for production facilities
• Industrial chemicals, equipment, and machinery
• Health, Safety, and Environment (HSE) services
• Logistics, freight forwarding and intra-field transport
• ICT systems, software and instrumentation
• Specialized engineering, fabrication and mechanical works
• Skilled manpower, training, and certification services

“Our focus is to maximise value retention for Ugandans and make Uganda a sound investment destination,” Rubondo said, reaffirming PAU’s commitment to expanding national content and facilitating technology transfer.

Delivering the keynote address, Bank of Uganda Governor Michael Atingi-Ego urged enterprises to view the oil sector as a catalyst for long-term national development rather than short-term gains.

Quoting economists Paul Collier and Joseph Stiglitz, Atingi-Ego stressed that “the real test is not in extracting resources, but converting them into productive assets.”

He said that the US$11 billion already invested in the oil and gas sector has laid the foundation for roads, industrial parks, and logistics hubs that will support Uganda’s economy for decades. The challenge now, he noted, is ensuring that the oil era creates empowered local firms, skilled Ugandans, and resilient communities, rather than simply infrastructure without inclusion.

The two-day conference—held under the theme “Beyond the Drill: Cultivating a Legacy of Empowered Nationals and Enterprises in Uganda’s Oil Age”—brings together government ministries, regulators, financiers, international oil companies, and hundreds of Ugandan businesses.

Alongside plenary discussions, the exhibition hall features companies showcasing products and services relevant to the production phase.

The event will close with the National Content Awards, celebrating achievements in skilling, technology transfer, supplier development, inclusivity, CSR, and strategic partnerships.

Organisers say the conference is designed to equip Ugandan enterprises with the knowledge, networks, and readiness needed to secure a meaningful share of the sector’s upcoming production-phase spending.