DevelopmentEnergy & MiningFinancialLegalNewsOrganisationsTrade

Benefiting from oil and gas: Local suppliers urged to register with NSD

KIKUUBE, March 13, 2024 – Local suppliers in Bunyoro Sub-region have been advised to register with the National Supplier Database [ NSD ] to be able to do business in the country’s nascent oil and gas sector.

The call was made during the China Offshore Oil Company [CNOOC Uganda] Quarter One National Content Suppliers Development Workshop aimed at creating awareness about available opportunities at Kingfisher Development Area in Kikuube district.

The workshop was organised in partnership with a local non-governmental organisation, Bunyoro Research Agency and Development Organisation [BRADO].

UNOC, as the Government nominee, holds a 15 percent participating interest in the oil project while other partners, CNOOC Uganda and TotalEnergies EP Uganda hold 28.33 percent and 56.67 percent respectively.

Government insists the country will produce its first oil by 2025, and various oil companies have been undertaking different activities in the Albertine Graben currently estimated to have at 6. 5 billion barrels out of which 1. 4bln barrels are technically recoverable.

Government wants local companies including farmer groups to earn part of the money being invested in the project but only a few have registered in the NSD, from which suppliers and contractors are picked.

Kenneth Peter Bintu the Enterprise Development Officer at Petroleum Authority of Uganda [PAU] which manages the NSD said that last year 544 local companies in Bunyoro Sub-region have been trained to be able to engage in the oil and gas sector.

He expressed concern that despite many companies being trained, only a few of them, mostly  hotels, have  registered in the NSD, meaning many local companies will not get business in the oil and gas sector. Farmers in Bunyoro have an opportunity to provide food items to various companies operating in the area.

He said to register in the NSD, a company needs to have a reference letter from a bank, National Social Security Fund [NSSF] clearance and tax identification number [YIN], tax clearance certificate and details of the shareholders.

He said the NSD being an online platform, it is viewed by companies across the globe, adding it enables  the local companies to access new markets, informational and have visibility among the contractors.

He also challenged the  local suppliers to establish joint ventures  with other companies already in contracted in the local oil and gas sector, adding local subcontractors can get jobs as longs they are in groups.

On his part, Eric Jumba CNOOC National Content Manager challenged the local suppliers in Bunyoro to mind about quality assurance if they are to do business in the oil and gas sector.

He said procurement, and construction works for the US$ 23 million oil project at are at Kingfisher Development Area is progressing well, with four out of 31 wells already drilled.

He added the construction the camps, roads, central processing facility and feeder pipeline are at 6 percent progress, noting business opportunities for local communities exist with this development works.

For his part, Mart Byaruhanga, Executive Director of BRADO  said services like health, transport, hospitality, security, food supply, and construction  are some of the services ring-fenced  by government for the local communities so that they benefit from oil investments.

He urged people in  Bunyoro to prepare to grab such opportunities, warning that it they fail people from other parts of the country will be the ones to benefit.

https://thecooperator.news/bunyoro-subjects-advised-to-form-cooperatives-to-benefit-from-oil-and-gas/

Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news

Views: 1

Related Articles

Back to top button