5 May 2010
Uganda's reserves are estimated at 2 billion barrels and limited commercial production is due to start this year.
The bill - The Petroleum (Exploration, Development, Production and Value Addition) Act 2010 - will make upstream players give the government a list of its contractors and subcontractors at the end of each calendar year, a Reuters report said.
"The licensee, its contractors and subcontractors shall give priority to competent citizens of Uganda and registered entities owned by Ugandans in the provision of goods and services," the bill said.
The bill, due to be tabled in Parliament in the second half of the year, will require producers and their contractors to give preference to Ugandan products and services if they are competitive in pricing, quality and availability.
The annual reports submitted to the government are also expected to show the companies' records in using Ugandan goods and services during a given calendar year.
Uganda's petroleum industry is being built from scratch and the government is eager to integrate the local private sector into all aspects of the industry and maximise the impact of oil production on the local economy.
"Tullow Oil Uganda already prioritises Ugandan companies where we can and report regularly on progress to government," Brian Glover, Tullow's Uganda general manager, told Reuters.
"There's a great opportunity for local content to grow in this new sector."
Ugandan government officials were not immediately available for comment.
Foreign investment in the budding petroleum sector has been surging since UK players Tullow and Heritage Oil scored big exploration successes in the country’s Albertine Rift.
France's Total and China's China National Offshore Oil Corporation are also pushing to enter Uganda's play.
The bill - The Petroleum (Exploration, Development, Production and Value Addition) Act 2010 - will make upstream players give the government a list of its contractors and subcontractors at the end of each calendar year, a Reuters report said.
"The licensee, its contractors and subcontractors shall give priority to competent citizens of Uganda and registered entities owned by Ugandans in the provision of goods and services," the bill said.
The bill, due to be tabled in Parliament in the second half of the year, will require producers and their contractors to give preference to Ugandan products and services if they are competitive in pricing, quality and availability.
The annual reports submitted to the government are also expected to show the companies' records in using Ugandan goods and services during a given calendar year.
Uganda's petroleum industry is being built from scratch and the government is eager to integrate the local private sector into all aspects of the industry and maximise the impact of oil production on the local economy.
"Tullow Oil Uganda already prioritises Ugandan companies where we can and report regularly on progress to government," Brian Glover, Tullow's Uganda general manager, told Reuters.
"There's a great opportunity for local content to grow in this new sector."
Ugandan government officials were not immediately available for comment.
Foreign investment in the budding petroleum sector has been surging since UK players Tullow and Heritage Oil scored big exploration successes in the country’s Albertine Rift.
France's Total and China's China National Offshore Oil Corporation are also pushing to enter Uganda's play.
