Building local capacity in the oil and gas sector

Key Takeaways from the IEC Supplier Development Workshop

The Industry Enhancement Centre (IEC) successfully hosted the Supplier Development Workshop on February 25, 2025, in Kololo. The event brought together key players in Uganda’s oil and gas sector, including local suppliers, government agencies, and industry stakeholders, to discuss procurement processes, compliance requirements, and business opportunities.

The workshop featured insights from TotalEnergies EP Uganda (TEPU), the Petroleum Authority of Uganda (PAU), and the East African Crude Oil Pipeline (EACOP). Speakers provided guidance on navigating the highly regulated oil and gas sector.

PAU’s National Content Officer, Jassim Kiwanuka, emphasized the importance of proactive engagement, certification, and networking for suppliers.

“Participation in workshops like this, coupled with certification and networking, is key to unlocking opportunities in the sector,” he said, urging businesses to register on the National Supplier Database (NSD).

EACOP’s National Content Capacity Building Lead, Natasha Kassami, highlighted procurement opportunities in the transition from construction to operational phases. Key service areas requiring local suppliers include:

Engineering & Civil Works

Transportation & Logistics

Pipeline Monitoring & Inspection Services

Equipment Supply & Maintenance

Skilled Labour & Training

Kassami noted that while many construction contracts had already been awarded, suppliers should focus on upcoming operational needs.

A panel discussion featuring representatives from Sinopec, TEPU, and PAU outlined key challenges, including:

Pricing & Competitiveness – Many Ugandan suppliers overprice, making international firms more competitive.

Compliance & Certification – Meeting industry standards (ISO, HSE) is crucial to securing contracts.

Bid Documentation & Financial Preparedness – Errors in tender documents, lack of bid security, and weak financial backing often lead to disqualification.

A procurement representative stressed: “If you’re supplying items without certification or traceability, you automatically lose out.”

Participants raised concerns about winning contracts. Key takeaways included:

Joint Ventures (JVs) – Small businesses were advised to collaborate with larger firms to strengthen bids.

Competitive Pricing – Suppliers were urged to benchmark prices to avoid overpricing.

Bid Preparation – Understanding tax deductions, certification needs, and financial requirements is essential.

The IEC Supplier Development Workshop provided valuable insights for local suppliers. Key recommendations included:

Stay informed on industry opportunities.

Obtain necessary certifications (ISO, HSE, etc.).

Build networks and collaborate with international firms.

Master bid preparation to meet all requirements.

Set competitive and fair pricing.

IEC’s Project Implementor, Christine Ssenteza, reaffirmed their commitment to supplier development:

“Our goal is to see Ugandan companies grow in this industry. We will continue to provide training, networking, and supplier development programs to help businesses seize these opportunities.”

IEC and its partners will host more business clinics and networking forums to support supplier growth in Uganda’s oil and gas sector.