PAU tips local suppliers on joint ventures in Uganda’s oil and gas sector

The Petroleum Authority of Uganda (PAU) has urged local companies to embrace joint ventures as a strategy to enhance their competitiveness and participation in Uganda’s expanding oil and gas sector.

The call was made during a National Content Development Supplier Workshop held in Hoima, organized by COSL Uganda SMC Limited, a Tier One contractor for TotalEnergies and CNOOC Uganda. Over 60 Ugandan businesses attended the session.

Vivienne Nabbosa, PAU’s National Content Officer in charge of contracts, said many local firms continue to face challenges due to limited financial and technical capacity, preventing them from securing contracts in the sector.

“Where local suppliers lack either technical or financial capacity, Regulation 9(2) of the National Content Regulations, 2016 encourages them to form joint ventures,” Nabbosa explained. “These partnerships could be with other Ugandan firms that have the required capacity or with international companies that bring technical expertise and financial backing.”

The aim, she added, is to promote knowledge transfer, build local capability, and ensure increased Ugandan participation in the sector in line with national content goals.

COSL Uganda’s General Manager, Xia Yu, reaffirmed the company’s commitment to supporting local businesses, disclosing that contracts worth over USD 93.9 million (UGX 356 billion) have already been awarded to 67 Ugandan companies as of June 2025.

“In the second half of the year, we plan to deepen our engagement with community-based enterprises,” Xia said, noting that COSL is also prioritizing technology transfer and skills development through training programs, graduate placements, and internships.

TotalEnergies EP Uganda also highlighted its ongoing Community Supplier Development Program (CSDP), which targets businesses in Hoima, Buliisa, Kikuube, Masindi, Pakwach, and Nwoya districts. Melidah Mirembe, the company’s National Content Coordinator, said the initiative focuses on enhancing supplier readiness in areas such as health, safety, and environmental (HSE) management, regulatory compliance, and sustainability practices.

A baseline survey conducted between December 2023 and January 2024 revealed that most community-based enterprises were not formally registered. According to Allen Nzira from E-360, the firm implementing the CSDP, only 13% were registered with the Uganda Registration Services Bureau, 14% had Tax Identification Numbers, 7% were enrolled with the National Social Security Fund, and just 3% appeared on the National Supplier Database.

Despite the capacity-building efforts, some local suppliers expressed concern over pricing structures in oil and gas contracts. “The standards required are high, but the prices offered are not competitive,” said James Bukoya, General Manager of a local hotel in Hoima. “If contractors expect high standards, they should also be willing to meet local suppliers’ price expectations.”

The workshop, held under the theme “Enhancing the Capacity of Community Suppliers to Meet Industry Standards,” is part of PAU’s ongoing initiatives to promote national content development and support Ugandan businesses to participate meaningfully in the petroleum sector.