Total’s oil drilling rig at work in Buliisa
The Uganda National Oil Company (UNOC) has revealed that Uganda’s oil and gas sector has cumulatively attracted contracts worth US7.163Bn (Shs28.052Trn).
However, locally owned companies have only scooped deals worth US2Bn (Shs7.830Trn).
The revelation was made by Proscovia Nabbanja, the Chief Executive Officer at Uganda National Oil Company while addressing journalists at the State House Investors Protection Unit offices located in Nakasero-Kampala.
“The cumulative value of contracts awarded since 2021 to date stands at US$7.163Bn (Shs28.052Trn) of which just slightly under US$2Bn (Shs7.830Trn), has been awarded to Ugandan companies through direct tier one, those that are being contracted by international oil companies and sub-contracting. That is value addition but of course the intention is to retain about 40% of the investment,” Nabbanja.
She added that Government also established a national supplier database that facilitates acquisition of these contracts and since its creation in 2014, 10,542 applications have been received from companies that are now registered on the supplier database and so far, 73% of the companies are involved in supplying the sector.
Nabbanja also provided an update on the status of the Jinja storage terminal, noting that the former contractor gave up the sole operatorship and handed over to UNOC the facility and since then, the project has undergone refurbishment and there are plans to improve the operational efficiency of that terminal and open up the collection between the terminal and the lake through a pipeline
The Uganda National Oil Company also provided an update on the legal impasse Uganda and Kenya are embroiled in falling the amendments to the Petroleum Supply Amendment Bill 2022 that gave UNOC monopoly to supply petroleum products in Uganda, with Nabbanja saying that the Ugandan Government is hoping to have the matter resolved.
She said UNOC is optimistic that an impasse involving a court case in Kenya will be resolved so that the sole importation kicks off. “Discussions are also ongoing with Tanzania as an alternative to Kenya,” she said.
