The Petroleum Authority of Uganda (PAU) has revealed that Ugandans have benefited from the petroleum projects to a tune of US$ 171.93m (Shs605bn), representing 37% of the money invested in the industry from 2017 to 2020.
PAU was responding to city lawyer Andrew Oluka who, in July 2021 filed a motion against the PAU and two International Oil Companies (IOCs) operating in Uganda – Total E&P Uganda Limited and CNOOC Uganda Limited.
According to PAU, Oluka alleges that the ongoing procurement processes for the oil and gas projects in Uganda are denying Ugandans economic rights to participate in the projects. Oluka’s other allegation is that all contracts are being given to foreign companies, denying Ugandans economic rights to participate in the projects.
PAU says that between 2017 and 2020, the IOCs spent a total of US$171 million on procurement of various goods and services from Ugandan companies, representing 37% of the money invested in the sector during the 4-year period.
“The PAU ensures that priority is given to Ugandan entities in procurement of goods and services. However, where Ugandan entities are unable to provide the goods and services, joint ventures between Ugandan entities and foreign companies are considered,” says PAU in a statement issued August 20, 2021.
PAU says international companies are only considered in the absence of both while the calls for tender and expressions of interest issued by the IOCs emphasize the need for bidders to comply with National Content laws. According to the PAU, the authority oversees the IOC procurement processes and assesses bid evaluation reports to ensure that the procurements meet the National Content requirements.
Regarding the contract in question, PAU says that the IOCs duly submitted the national content requirements, which will be strictly monitored by the PAU during implementation and that the claims are generic and do not relate to an appeal on a specific procurement in which the applicant participated.
The authority says it is committed to monitoring and regulating the National Content requirements of the oil and gas projects, in a transparent and objective manner.
