Ugandan oil enterprises urged to explore regional markets

KAMPALA, Thursday, December 4, 2025 — As the 6th Annual National Content Conference entered its final day, Ugandan enterprises supplying or seeking to supply goods and services to the oil and gas sector were urged to broaden their horizons and explore opportunities in regional oil markets.

The call came during a panel discussion on harnessing regional synergies to accelerate National Content growth. Panelists emphasized cross-border investments, joint supplier development, and collaboration across East Africa’s energy ecosystem, positioning the region as a competitive oil and gas hub.

During his keynote address, Jimmy Mugerwa, Project Manager at the Industry Enhancement Centre, cautioned that opportunities would narrow significantly once Uganda enters the operations and production phase.

“Beyond extraction lies the real opportunity — identifying, preparing for, and capitalizing on what is emerging. To get there, we must change speed, change direction, and rewire our approach. Our success will ultimately be measured by how much value remains here in Uganda,” Mugerwa said.

Regional Opportunities Highlighted

Namibia: Maggy Shino, Petroleum Commissioner at the Ministry of Mines and Energy, encouraged Ugandan companies to engage through joint ventures and partnerships. She noted that Namibia operates an open licensing regime with mandatory local participation during development, spanning pipeline laying, local fabrication, and refinery projects.

Kenya: Michael Karanja, Manager Upstream Petroleum at the Kenya Petroleum Regulatory Agency, highlighted opportunities in the Lokichar oil basin. He explained that Kenya’s legal framework — including the Constitution, National Petroleum Policy, Petroleum Act, and Energy Act — supports enhancement of local content through joint ventures and consortiums, presenting opportunities for Ugandan enterprises.

Tanzania: Several Ugandan contractors are already active on both sides of the East African Crude Oil Pipeline (EACOP). Merian Ahabwe, EACOP National Content Manager, said that Tanzanian law requires foreign companies to establish a local office and form joint ventures with domestic firms. “There are success stories of Ugandan companies establishing themselves in Tanzania — about five companies so far. Through the Industry Enhancement Centre, EACOP Uganda has provided training, most recently for contractors under Montrac who have gone to Tanzania,” she noted.

PAU Strategic Priorities

As Uganda prepares for the production and operations phase, the Petroleum Authority of Uganda (PAU) outlined its Tenfold Strategy. Key priorities include commercialisation of crude oil to maximize export earnings, completion of key oil and gas projects, development of the petrochemical industry, advancement of the refinery project to drive import substitution, progress on the national LPG project, strengthening backward and forward linkages in sectors such as agriculture, tourism, and manufacturing, attracting and managing foreign direct investment, ensuring fiscal compliance, and driving Uganda toward a US$5 billion annual export target.

The conference underscored the importance of strategic regional engagement, capacity building, and partnership development as Uganda’s oil and gas sector moves closer to full-scale operations.