By KT Reporter
The Petroleum Authority of Uganda (PAU) has urged farmers in the Albertine Graben to form joint ventures if they are to adequately and effectively supply Uganda’s fast-growing oil and gas sector. According to PAU, although many farmers are eager to supply agricultural products to the oil and gas industry, they lack the individual capacity to deliver consistently daily.
Peninah Aheebwa, the Director of Technical Support Services at PAU, emphasized that forming joint ventures would help farmers tap into the vast opportunities within Uganda’s oil and gas sector, particularly in the supply of goods and services. She explained that joint ventures would enable farmers to build capacity, gain experience, and meet the strict quality standards required by the industry.
Speaking during the Agribusiness Forum for farmers in the Tilenga project area—operated by TotalEnergies in Buliisa on Tuesday—Aheebwa said joint ventures also allow farmers to pool resources and expertise to meet the technical and quality demands of the oil and gas sector, which often require high standards.
She noted that the industry needs a consistent and reliable supply of goods and services, including food for workers. The formation of joint ventures, she added, is crucial to helping farmers scale up production to meet such demand. Aheebwa also encouraged farmers to produce beyond the oil and gas sector, suggesting they aim for surplus production that could be exported. She further called on farmers to position themselves to benefit from the oil and gas sector, urging Ugandans to proactively invest in it.
Godfrey Lukwago, the Stakeholder Engagement Manager at TotalEnergies EP Uganda, said the Agribusiness Forum was designed to target farmer groups, bridge knowledge gaps, and promote entrepreneurial thinking while fostering sustainable connections across Uganda’s agricultural value chain. He said the forum reflects the company’s commitment to sustainable development and community empowerment, emphasizing the value of linking farmers with key players in the agribusiness sector.
Meanwhile, Buliisa District Chairperson Fred Lukumu urged TotalEnergies and the government to ensure that local farmers benefit directly by supplying the oil and gas sector, noting that some already have the financial muscle to meet demand. George Ochaya, a farmer from Purongo Sub-county in Nwoya District, voiced concern over a lack of markets for their produce.
Similarly, Alfred Ochirchan, a vegetable farmer from Kakora village in Buliisa, noted that despite producing enough, oil companies do not buy from them. He appealed to the government to compel oil companies to source directly from local farmers. Vicky Achan, a beekeeper from Purongo Town Council, said the bureaucracy involved in registering a company on the National Suppliers’ Database is discouraging.
She noted that registration is a crucial requirement to qualify as a supplier to the oil and gas industry. Uganda’s national content laws require that goods and services supplied to the oil and gas sector be provided by Ugandan companies. If not available locally, they should be supplied through joint ventures (JVs) between Ugandan and foreign entities. Both upstream and midstream petroleum laws recognize the need for such joint ventures, especially for complex goods and services.
JVs must be approved by the PAU and registered on the National Suppliers’ Database. The PAU evaluates JVs based on experience, financial and technical competence, active participation by all parties, and potential for skills transfer to Ugandans. Some of the goods and services Ugandans can supply include transportation, security, food and beverages, hotel accommodation and catering, HR management, office supplies, fuel, land surveying, clearing and forwarding, crane hire, construction materials, civil works, environmental studies, ICT services, and waste management.
Currently, a beehive of activity is underway in the Albertine region, with operations at the Tilenga area managed by TotalEnergies EP Uganda and the Kingfisher area by China National Offshore Oil Corporation (CNOOC) Uganda Limited-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
