Prime
1,000 firms fit to supply in oil chain
Welding students undergo specialised training in Hoima last year. File photo
The Petroleum Authority of Uganda (PAU) has qualified 1,101 companies in the supply chain in oil and gas industry to provide services to major companies engaged in oil exploration and construction of the infrastructures.
For a company to be eligible to provide services in the oil and gas industry they have to register in the National Suppliers Data base.
Speaking during the Suppliers conference at Kampala Serena Hotel last week, the national content officer of Petroleum Authority of Uganda, Mr Alex Byamukama, said all companies fulfilled the requirements of getting registered in the National Suppliers Data base (NSD).
“The Authority has so far received 1,716 applications. Of these, 678 new applications and 1,038 existing suppliers expressed interest by updating their record system. Out of the total applications received, 1,101 have been qualified,” he said.
However, Mr Byamukama said they still need more Ugandan companies that fulfill the oil supply requirements to participate.
“In the context of the Local Content, we still need more local companies to participate in the oil and gas industry by providing services they major companies engaged in the exploration and construction of infrastructures,” he said.
Explaining eligibility for the data base, Mr Byamukama said all Ugandan and foreign companies/entities /persons that can supply goods and services to the oil and gas sector in Uganda can apply.
He said the number of applications in the NSD 2018 increased to 2,558, up from 774 in 2017. Registered entities also increased from 513 to 1,752. Of these, more than 1,000 are Ugandan registered entities.
“Registration on the NSD 2019 does not waive the requirements for the qualified entity or person to participate in the tendering processes for the provision of goods, works and services in the oil and gas industry,” he said.
Raise funds
Armour Energy raises funds for its operations through the stock exchange in Australia whose market is worth $55 million. But Uganda’s stock exhange is struggling.
“Uganda has a nascent stock exchange and Uganda currency is securitised. Our poor stock market in Uganda is a challenge to the oil and gas investment. It is always the stock market through equities and bonds that money is generated for long term investments,” Dr Buringuriza said.
Partner to offer oil and gas services
Dr Tom Buringuriza, the country manager of Armour Energy, said Ugandan companies should prepare to collaborate through joint ventures/ partnerships to participate in the sector.
“Local companies have a challenge of financing because investing the oil and gas sector is very expensive whereby many local companies borrow money from banks to finance their operations. You can raise funds in oil and gas through the stock markets; the equity and the assets,” he said.
