The Petroleum Authority of Uganda (PAU) has confirmed that Ugandan companies have secured over US$2.2 billion in contracts in the oil and gas sector. This reflects real growth in national participation since development activities began.
Operators have submitted more than US$7 billion in contracts for approval, and just over 30 percent have been awarded to Ugandan firms delivering services such as civil works, logistics, engineering support, construction materials, catering, safety, and manpower supply. This marks a clear jump from earlier phases when they held under 10 percent of the work.
The benefits extend beyond contract values. Nearly 20,000 Ugandans now work directly in oil and gas, while over 180,000 earn a living through related industries including transport, agriculture, security, manufacturing, and hospitality. The activity is reaching far beyond project sites.
Ugandans are filling most positions within operations. They currently occupy 64 percent of management roles, 85 percent of technical roles, and 99 percent of support roles. Local talent is now leading the way in day-to-day tasks.
Uganda has also invested heavily in capacity building, with more than US$21 million spent to train over 13,000 nationals in welding, electrical work, safety, mechanical maintenance, and heavy-vehicle driving. Many of these workers are already contributing to the Tilenga and Kingfisher projects.
Opening the 6th Annual National Content Conference, State Minister for Energy Opolot Okasai highlighted that Uganda is shifting from construction to the production phase. With 6.65 billion barrels of oil in place and 1.65 billion barrels recoverable, production could reach about 230,000 barrels per day, placing Uganda among mid-level producers in Africa.
He also stressed that lasting benefits depend on strong institutions and local enterprises that can continue thriving long after extraction slows down.
Petroleum activities are expected to run for 20 to 25 years, with annual operational spending above US$8 billion. This gives Ugandan firms room to expand in maintenance, ICT, manufacturing, chemicals, engineering, machining, and equipment supply as long as capabilities keep growing.
Despite the progress, PAU’s Director of Economics and National Content Monitoring, Peninah Aheebwa, pointed out ongoing challenges, including delayed payments, poor joint venture practices, and qualification disputes that continue to limit participation.
She noted that PAU is actively resolving disputes and closely monitoring compliance with national content requirements to keep the system fair.
Aheebwa also highlighted the upcoming National Content Fund, which aims to provide affordable financing so local firms can remain competitive.
As Uganda approaches first oil, more contracts for local companies, wider job creation, and improved skills are shaping a stronger national role in the industry. Achieving long-term benefits, however, will require consistent effort and accountability even as milestones are celebrated.
source: nilepost.co.ug
African Energy Council