Reaping from oil and gas:  Bunyoro suppliers call for special treatment

HOIMA -Local suppliers and contractors in the Bunyoro Sub-region say they are facing hurdles when it comes to accessing oil and gas opportunities, arguing that they need special consideration if they are to benefit from the sector expected to boost Uganda’s economy in the years ahead.

Bunyoro is home to Albertine Graben where oil deposits were discovered and various activities by oil companies TotalEnergies and CNOOC Uganda are underway to produce Uganda’s first oil by 2025, as put by government.

Local suppliers and contractors in Bunyoro complain that when government and oil companies signed the final investment decision IFD on US$ 3.6 billion East African Crude Oil Pipeline [EACOP], they expected to get several opportunities but have not gotten any as most jobs are going to local companies from Kampala.

Speaking during the supplier development conference organised by CNOOC Uganda aimed at preparing local suppliers for the sector, different stakeholders expressed concern that it is difficult for them to get contracts to supply goods and services.

Martin Owori, the director of Resort Hotel said the stringent criteria for the local companies to participate in the local oil and gas activities are hindering local companies from Bunyoro Sub-region.

He noted that the local suppliers to the oil and gas sector are required to register with the National Supplier Database [NSD], yet most of the local individuals and companies do not have all the requirements for registration.

To register with NSD managed by the Petroleum Authority of Uganda [PAU] companies must provide information on; Proof of legal status and legal name, good market conduct, good liquidity status, compliance with tax and social security requirements, and valid bank reference as well as authentic, valid and up to date shareholding and management of the company or entity.

Individual consultants are required to provide; proof of nationality, tax registration, and expertise, a valid national identification card or valid passport for Ugandan citizens, valid alien identification card or a Bio Page of a valid Passport for non-Ugandans, and industry accreditation certificates if any.

“These conditions are failing us. They ask for this and that, ask for financial strength. We are not banks that keep the money. Just give us the business. We shall get money and finance it,” Owori said.

He added that several times, they have been advised to form joint ventures, which has not been helped as well.

“On the issue of joint ventures, they let us down. When we give them our documents, they use them but do not give us feedback on whether you have won a contract or not. We request that there should be a gap in communication between all the parties,” he said.

Fred Musinguzi of Muka Investment Limited and chairman Bunyoro Business Club said the lack of information and a coordination office in the region is preventing the locals from engaging in the oil and gas sector.

He demanded the establishment of a liaison office in the region to help the local suppliers to get the right information at the right time to be able to benefit from the sector.

He noted that there is a need to put in place a favorable business environment for the local business communities to be able to compete for oil opportunities.

Mathew Kyaligonza, the National Content Manager CNOOC Uganda urged the Bunyoro business community to collaborate with agencies that have strong financial capacities, saying it will help them get contracts easily.

He explained that National content regulation gazetted   16 fields, which are only reserved for Ugandans. He highlighted some of them as; security services, logistics and transport, waste management, health, accommodation, and catering among others.

However, he said that there is a need for business communities in Bunyoro, to prepare for the sector by registering on the NSD and keep updated with the oil and gas information.

So far, the road network connecting different oil towns and facilities like a refinery at Kingfisher oil project, a Central Processing Facility at Kasenyi in Buliisa District, an airport in Buseruka Sub-county, and the construction of the oil pipeline are some of the projects that people from Bunyoro expected to get contracts.

https://thecooperator.news/totalenergies-launches-initiative-to-protect-environment/

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