Oil and gas newsletter

This publication summarises the provisions of the Petroleum (Exploration, Development and Production) Act 2013 and the Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act 2013 and the respective Regulations with respect to the promotion of “national content” and highlights the implications of the definition of a “Ugandan company” for different players in the industry.

Background

The principle of national content and its promotion was initially set out in the National Oil and Gas Policy, 2008 (the Policy) and subsequently in the Petroleum (Exploration, Development and Production) Act, 2013 and the Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act, 2013, as one of the guiding factors in the licensing and regulation of the various entities participating in Uganda’s Petroleum Industry.

Key requirements

Section 125 of the Petroleum (Exploration, Development and Production) Act, and section 53 of the Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act (“the Acts”) require licensees, their contractors and subcontractors to give preference to goods produced or available in Uganda and services rendered by Ugandan citizens and companies.