Bunyoro Leaders Demand Greater Local Content Benefits from Oil and Gas Projects

Bunyoro Leaders Demand Greater Local Content Benefits from Oil and Gas Projects

Leaders, residents and local contractors in the Bunyoro sub-region have challenged oil and gas companies to increase local participation in employment and business opportunities, saying host communities are yet to fully benefit from Uganda's petroleum developments.

Leaders, residents and local contractors in the Bunyoro sub-region have expressed concern over what they describe as limited local participation in Uganda's oil and gas industry, accusing companies of falling short on promises to prioritise host communities in employment and business opportunities.

The concerns were raised during a supplier development workshop held in Hoima City over the weekend to equip local businesses and communities with skills to compete for opportunities in the country's oil and gas sector.

Hoima District Chairperson Uthuman Mugisha said local residents continue to miss out on meaningful employment despite hosting major oil and gas projects.

"Even when locals are hired, they are mostly offered low-paying casual jobs, which is contrary to the objective of promoting local content in the industry," Mugisha said.

He also claimed that local companies are often awarded low-value contracts, limiting meaningful participation by businesses from the Bunyoro sub-region.

Mugisha further urged oil and gas companies to strengthen their corporate social responsibility programmes to support local governments hosting the projects.

Hoima District Woman MP Beatrice Wembabazi called for the recruitment of community workers to help residents register and access opportunities in the oil and gas sector.

She also encouraged local communities to embrace local content initiatives to maximise the benefits arising from the industry.

Hoima City contractor Leonard Kusemererwa accused some oil companies of delaying payments to local service providers.

He claimed that his company, together with others in the region, is owed about US$10 million for services rendered more than three years ago. However, he did not identify the company involved.

Richard Mwesigwa, a resident of Hoima City, appealed to oil companies to give greater priority to businesses and workers from host communities.

The Bunyoro sub-region hosts two of Uganda's flagship upstream petroleum projects: the Kingfisher Development Area operated by CNOOC Uganda in Kikuube District and the Tilenga Project operated by TotalEnergies EP Uganda in Buliisa District.

Responding to the concerns, Petroleum Authority of Uganda economist Eric Odongo urged local entrepreneurs to register their companies on the National Supplier Database (NSD), saying registration is a prerequisite for qualifying for contracts in the petroleum sector.

On delayed payments, Odongo advised local contractors to strengthen their competitiveness by forming joint ventures that can meet the industry's supply capacity requirements.

Uganda National Oil Company (UNOC) Head of Exploration and New Ventures Roidah Kiconco said Ugandan participation in the oil and gas sector had improved significantly, particularly among people from the Bunyoro sub-region.

She attributed the progress to initiatives by oil companies to equip local communities with skills required for the industry.

UNOC National Content Specialist Jessica Kyeyune encouraged local businesses and farmers to explore opportunities beyond upstream oil production, including those expected to arise from the planned oil refinery and Kabalega International Airport.

She noted that the Final Investment Decision for the refinery is expected by December this year, after which construction is projected to take about three years.

The workshop focused on preparing local businesses and communities to compete more effectively for opportunities in Uganda's expanding oil and gas value chain.