Form Joint Ventures to Win Oil And Gas Contracts, PAU Urges Local Suppliers

The Petroleum Authority of Uganda (PAU) has called on local suppliers to embrace joint ventures as a strategic approach to increase their competitiveness in Uganda’s fast-growing oil and gas sector.

Speaking during a supplier development workshop organised by COSL Uganda SMC Limited—a Tier One contractor for both TotalEnergies and CNOOC Uganda, in Hoima, Ms. Vivienne Nabbosa, PAU’s National Content Officer in charge of Contracts, told over 60 participating Ugandan entities that limited financial and technical capacity continues to hinder local firms from securing contracts in the highly competitive bidding processes.

“Where local suppliers lack either technical or financial capacity, Regulation 9(2) of the Petroleum (Exploration, Development and Production) (National Content) Regulations, 2016 encourages them to form joint ventures in order to effectively participate in the sector. These may include joint ventures with other Ugandan suppliers who possess the required capacity, or joint ventures with non-Ugandan companies that can offer technical expertise and financial support,” said Ms. Nabbosa

These partnerships are intended to foster knowledge transfer, build local capacity, and ensure maximum Ugandan participation in petroleum activities, in line with the goals of national content promotion under the National Content Regulations.

Mr. Xia Yu, the General Manager, COSL-Uganda retaliated the company’s commitment to creating opportunities, transferring knowledge, and fostering economic growth by ensuring that Ugandan businesses and professionals actively contribute to and benefit from the oil and gas industry

“As of June 2025, COSL Uganda had awarded contracts valued at over USD 93.9 million to 67 Ugandan companies, a clear demonstration of our commitment to engaging and empowering local businesses. In the second half of the year, we aim to further increase the participation of Ugandan firms, with a particular focus on community-based enterprises,” said Mr. Xia Yu.

Mr. Xia added that COSL Uganda had prioritised Knowledge and Technology transfer for Ugandan citizens in an effort to build a skilled workforce. Through its annual plans, the company has rolled out several initiatives including industry training programs, graduate traineeships, and internships that provide hands-on experience and exposure to real-world operations.

Ms. Melidah Mirembe, National Content Coordinator at TotalEnergies E&P Uganda (TEPU), emphasized the importance of partnerships in enhancing the capacity of local suppliers. She noted that TEPU is currently implementing the Community Supplier Development Program (CSDP) in the primary project districts of Hoima, Buliisa, Kikuube, Masindi, Pakwach, and Nwoya. The program aims to build on the recommendations from the 2022/2023 pilot phase to strengthen the capability and competitiveness of community suppliers, enabling them to meaningfully participate in opportunities within the oil and gas sector and beyond.

“TEPU is conducting trainings in areas such as HSE management systems, integrated management systems, regulatory compliance, and sustainability practices — all of which are designed to support and benefit community suppliers,” Ms. Mirembe shared.

A baseline assessment conducted between December 2023 and January 2024 reached a total of 1,325 community suppliers. The findings revealed that a significant number of community-based companies lacked formal registration. According to Ms. Allen Nzira from E-360, the firm contracted by TEPU to implement the Community Supplier Development Program (CSDP) revealed that only 13% of the enterprises were registered with the Uganda Registration Services Bureau (URSB), 14% had Tax Identification Numbers (TINs), 7% were enrolled with the National Social Security Fund (NSSF), and just 3% were listed on the National Supplier Database (NSD).

The CSDP aims to enhance the capacity of community suppliers to deliver goods and services, create platforms for sharing opportunities and market linkages, and engage government agencies to identify synergies that promote sustainability and maximize value. This has led to engagement with over 3000 community suppliers who have supplied TEPU through their Tier 1, 2 and 3 contractors.

However, some suppliers in attendance raised concerns about the pricing structures offered by oil and gas contractors, noting that they were not competitive despite the high standards required by the industry.

“The prices being offered are not attractive. As you demand high standards, please also be willing to meet our price expectations,” said Mr. James Bukoya, General Manager of one of the local hotels in Hoima City.

Held under the theme “Enhancing the Capacity of Community Suppliers to Meet Industry Standards,” the Quarter 2 National Content Development Suppliers Workshop was organized in accordance with the National Content regulations set by the PAU.