Local Suppliers Encouraged to Form Joint Ventures for Oil and Gas Contracts

The Petroleum Authority of Uganda (PAU) has urged local suppliers to embrace joint ventures to improve their competitiveness in the oil and gas sector.

 Speaking at a supplier development workshop organised by COSL Uganda SMC Limited in Hoima, Ms. Vivienne Nabbosa, PAU’s National Content Officer in charge of Contracts, said many Ugandan firms are hindered by limited financial and technical capacity. 

She cited Regulation 9(2) of the Petroleum (Exploration, Development and Production) (National Content) Regulations, 2016, which encourages partnerships between local firms or with foreign companies to enhance capacity and ensure meaningful participation in the sector.

COSL Uganda General Manager Mr. Xia Yu reaffirmed the company’s commitment to supporting local businesses, highlighting that by June 2025, COSL had awarded contracts worth over USD 93.9 million to 67 Ugandan companies.

He emphasized COSL’s focus on knowledge and technology transfer through training programs, internships, and graduate traineeships aimed at building a skilled Ugandan workforce. Mr. Xia added that COSL will prioritize the inclusion of community-based enterprises in its future contracting efforts.

Ms. Melidah Mirembe, National Content Coordinator at TotalEnergies E&P Uganda (TEPU), emphasized that partnerships are essential in enhancing local supplier capacity.

 She said TEPU is implementing the Community Supplier Development Program (CSDP) across six project districts to build supplier competence and compliance with industry standards.

A baseline study revealed significant gaps in business registration and regulatory compliance among community enterprises, with only 13% registered with URSB, 14% with TINs, and just 3% listed on the National Supplier Database.

While the workshop focused on empowering suppliers under the theme “Enhancing the Capacity of Community Suppliers to Meet Industry Standards,” some participants raised concerns over the low pricing offered by oil and gas contractors.

 Mr. James Bukoya, General Manager of a local hotel in Hoima City, urged contractors to align high industry expectations with fair pricing. The workshop was held in accordance with National Content Regulations issued by PAU and brought together more than 60 local enterprises.