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Local Engineering Firms Tipped On Oil and Gas Sector

As upstream oil and gas activities gather momentum, local firms have been urged to tap into underlying opportunities in the engineering and construction subsectors.

Monica Azuba Ntegge, the Minister of Works and Transport made this call on the sidelines of a Petroleum Authority of Uganda (PAU) symposium held at Mestil hotel in Nsambya.

“We have so many activities going on there to do with construction and engineering. We have the airport, roads and the refinery, so we really want them to make joint ventures so that they get ready for construction opportunities in the oil and gas industry”, she says.

About $20 billion is said to have been earmarked for the development of the oil sector.

Alex Nyombi the director development and production at PAU says upcoming oil field projects of Tilenga and King Fisher are expected to enhance national content in various ways.

About 5,000 workers for instance are targeted for the construction of Tilenga’s central processing facility and infield flow lines amongst others.

For kingfisher, 3,000 workers will be needed for the construction of flow lines and feeder pipeline measuring 16 and 55 kilometers respectively.

Once complete, officials say Tilenga, situated in Buliisa and Nwoya districts will have a central processing facility capable of pumping 190,000 barrels a day from 412 oil wells. On the other hand, Kingfisher will generate 40,000 barrels daily from 4 well pads.

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National Suppliers Database

To leverage and attract interested nationals, Nyombi says a National Suppliers Database (NSD) has been formulated to this effect.

However, he warns that registration on this platform does not automatically lead to award of contracts. First, he says applications are legally scrutinized to avoid side lining nationals and racketeering.

“We don’t want services that exist in a country to be imported as long as a country we have the quality we want and can deliver in the time required,” Nyombi explains.

Documents from PAU indicate that at the close of last year, a total of 1,147 entities had submitted applications with 716 of these were from Ugandan owned entities.

That said 431 were from firms registered in (43) countries outside Uganda.

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