The Petroleum Authority of Uganda holds National Content Conferences in Kampala

and Hoima Districts

The Petroleum Authority of Uganda

(PAU) held the first National Content

conference on 8th February, 2019, at

the Speke Resort, Munyonyo, in Kam-

pala, followed by a regional edition at

the Hoima Resort Hotel in Hoima Dis-

trict on 19th March 2019.

The objective of the conferences was

to take stock of the journey that the

Ugandan companies have gone

through, in providing goods and ser-

vices to the oil and gas sector. The

Kampala conference was attended by

650 participants, whereas the one in

Hoima brought together 400 partici-

pants.

The conference in Kampala was

officially opened by Hon. Eng. Irene

Muloni, Minister for Energy and

Mineral Development, who empha-

sised that Government’s approach to

National content is clearly and precise-

ly articulated in the existing Policy,

Legal and Regulatory frameworks,

including the Local Content Policy,

2018, which was passed by Cabinet in

June 2018.

Mr. Patrick Bitature, the Chair-

person Private Sector Foundation

Uganda (PSFU) delivered the keynote

address. “The private sector needs to

have an honest conversation on what

we need to do to build our competi-

tiveness, and meet the required

standards. We should lobby, and

lobby hard, for Government to put in

place a policy that sets aside 1% of the

value of contracts, into a Development

bank. This can be a revolving fund that

supports local content for the oil

industry”, he said.

The opening session of the

conference was chaired by Mr. Ernest

Rubondo, the Executive Director PAU,

and also included a presentation on

the status of Uganda’s oil and gas in-

dustry. The other sessions were

chaired by representatives from the

Ministries of Works and Transport, &

Education and Sports, together with

the National Environment Management

Authority and the PAU.

The conference featured speakers

who gave their experiences on doing

business in the oil and gas sector.

The speakers were from the Associa-

tion of Uganda oil and gas service pro-

viders, Stanbic Bank, Pearl Engineer-

ing, Multilines International, Inspecta

Africa, Mineral Services Limited, BE-

MUGA, EnviroServ, NewPlan Engi-

neering, G4S, Q-Sourcing, NFT Con-

sult, SYBYL Limited, the Uganda Na-

tional Oil Company (UNOC) and five

licensed oil companies (CNOOC,

Tullow, Total, Armour Energy and

Oranto Petroleum).

Left to right: Hon. Eng. Irene Muloni, Minister of Energy and Mineral Development officially opens the first

PAU National Content Conference in Kampala, Mr. Patrick Bitature, Chairman, PSFU (middle), gave the key-

note address, and Hon. Elly Karuhanga, Chairman UCMP made closing remarks.

KAMPALA CONFERENCE

Above: A cross section of participants, and below: Dr. Jane Mulemwa, the Chairperson, PAU

Board of Directors (centre) and Mr. Ernest Rubondo, (4th left) with the Speakers and Panelists

The Petroleum Authority of Uganda

(PAU) regulates the oil and gas sector

in order to create lasting value for

Ugandans, and contribute to Uganda

being a sound investment destination.

The key aspects of regulating the

oil and gas sector in Uganda are en-

suring (i) optimal management of the

petroleum resources; (ii) efficient

management of costs in the sector;

(iv) that the activities in the sector are

undertaken in a manner that is safe

and preserves the environment, and

(iii) growing, the participation of

Ugandans in the sector—National

Content Development.

Theme: Building the Competitiveness of Ugandan Entities for the Oil and Gas Industry

The keynote address at the regional

edition of the National Content Confer-

ence in Hoima was given by Dr. F.A.

Kabagambe Kaliisa, the Senior Presi-

dential Advisor on Oil, Gas and Miner-

als.

“As a region we have a comparative

advantage because we will host major

infrastructure for the sector, such as

the refinery and Uganda’s second

international airport. We, however,

need to prepare and get ready for

these opportunities because the Oil

and Gas sector will not wait for us. Do

not wait until it is too late for you to

participate, the time is now,” he em-

phasised.

The Speakers at the Hoima

conference included representatives

from Excel construction Company,

Equator Catering Services, G4S,

Hoima District Farmers Association

(HODFA), Q-Sourcing, and the Uganda

Petroleum Institute, Kigumba (UPIK),

among others.

The Key recommendations from the

conferences are summarised below:

For the Business Entities

1. Build effective management

policies and systems to reduce

operational costs.

2. Invest in strategic partnerships to

enhance technical capacity.

3. Undertake research and build

knowledge about the sector.

4. Establish and maintain records

including bank statements, audited

financial records, previous work

experience.

5. Diversify markets to ensure sustain-

ability.

6. Invest in social capital especially

around the areas of operation.

7. Compliance with the United

Nations Charter on Security and

Human Rights and the International

Code of Conduct in Private Security

Service.

For the Government and the IOCs

1. Strive to increase in-country value

retention from 28% to a much

higher level in the next phase.

2. Develop a policy on domiciliation

and avoid indigenisation; ensure

global manufacturers and suppliers

set up workshops and service

centres in the country.

3. Plan for certification and accredita-

tion of training institutions in collab-

oration with Ministry of Education

and Sports.

4. IOCs, contractors and subcontrac-

tors to take on students for intern-

ships and apprenticeships.

5. Operationalise the National Content

fund to enable access to affordable

capital.

6. Ensure that standards are published

and widely disseminated, and

support certification.

7. Facilitate registration of entities, in

operation areas on the NSD.

Hon. Elly Karuhanga, the Chairper-

son Uganda Chamber of Mines and

Petroleum UCMP) emphasised that

Ugandan entities had built capacity

and were preparing for the opportuni-

ties.

Dr. Jane N. Mulemwa, the Chairper-

son of the PAU Board of Directors, reit-

erated the PAU’s commitment to na-

tional content development. “These

conferences are building blocks to the

already the established legislative

and regulatory frameworks supporting

National Content Development. The

PAU will continue to hold regular

stakeholder engagements all over the

country to highlight the importance

and possibility of national participa-

tion,” she said.

CONCLUSION

From right; Dr. F.A. Kabagambe Kaliisa, Ms. Rosette Komugisha from Total E&P, Mr. Timothy

Tigaikara from CNOOC Uganda Limited and Ms. Betty Namubiru, the PAU’s Manager, National

Content during the Hoima conference.

RECOMMENDATIONS

HOIMA CONFERENCE

Head Office: Plot 34-36 Lugard Avenue, P.O.Box 833, Entebbe, Uganda, Phone (Entebbe): +256-414-320423

Liaison Office: Plot 29/33 Kampala Road, 4th Floor, Block B, Amber House , Phone (Kampala): +256-414-231924

Email: ed@pau.go.ug, nsd@pau.go.ug; nogtr@pau.go.ug, Website: www.pau.go.ug

A participant at the Hoima conference asks a question during the plenary session.