Ugandan Company Achieves Milestone With API Accreditation

Entebbe. As competition intensifies and the demand for certifications and accreditations in the oil and gas sector grows, it has become essential for both companies and their workforce to obtain these credentials. Certification not only builds industry trust but also enables organisations to compete at the highest level.

In Uganda, the lack of such accreditations has been a barrier, limiting local companies and workers from participating more extensively in the oil and gas industry. Since the Final Investment Decision (FID) in February 2022, the Petroleum Authority of Uganda (PAU) has approved contracts totalling approximately USD 7.16 billion, of which about USD 1.8 billion (or UGX 7 trillion) has been awarded to Ugandan companies. This trend could shift significantly with the recent achievements of a local Ugandan companies getting international certifications and accreditations.

One such local company that has registered this milestone as the first domestically established company to get accredited by the American Petroleum Institute (API), the global leader in setting standards for the oil and gas industry is E&E Experts Co. (U) Ltd.  The accreditation received by E&E Experts enhances its credibility both locally and internationally.

E&E Experts Co. (U) Ltd, a local Ugandan company specialising in drill pipes, casing, tubing, oil and gas supplies, inspection and audit services, chemical supply, steel structure manufacturing, technical consulting, spare parts, and flange manufacturing, has been awarded four API certifications. This accomplishment positions the company as a key player in the oil and gas sector, meeting internationally recognised standards.

These certifications also elevate the Ugandan oil and gas industry on the global stage, enhancing its competitive advantage. They demonstrate that Uganda’s local companies are advancing rapidly and competing favourably with international counterparts.

API standards are globally recognised benchmarks that promote consistent, safe, and reliable engineering and operational practices within the oil and gas industry. These standards ensure the safety, quality, and interchangeability of equipment and materials—ranging from drill bits to environmental protection systems. By establishing clear guidelines, API standards help streamline operations, enhance performance, minimise risks, and ensure that materials meet internationally accepted safety and environmental protection criteria.

Boosting Local Competitiveness

During the presentation of the certificates to Mr. Ernest Rubondo, Executive Director of the Petroleum Authority of Uganda (PAU), E&E Experts’ Country Manager, Muhamed Mahmoud Raafat, emphasized the significance of the API accreditation for the company’s profile and competitiveness.

"Operational excellence, environmental compliance, and competitive advantage enable us to work globally, enhance our market competitiveness, streamline costs, and reduce operational complexity," said Muhamed.

Mr. Rubondo praised the development, stating that it is a positive step for Uganda's local content goals. With this accreditation, a Ugandan company can now not only serve the oil and gas industry within Uganda but also expand into the regional market, being the only local entity with the required certification.

Addressing Local Content Challenges

Many Ugandan companies have struggled to win tenders in the highly regulated oil and gas industry due to the lack of essential international certifications. As a result, non-local companies often secure contracts that could otherwise be fulfilled by Ugandan firms. This development, according to Mr. James Musherure, Senior National Content Officer at PAU, sets a new benchmark for local companies.

"Having a certified local company will encourage other Ugandan firms to seek similar international accreditations. These standards cover everything from human resource management to operational efficiency, safety, environmental compliance, and material quality," Musherure noted.

He further emphasised that certifications like API are the minimum requirement for any company to earn trust and provide services in the oil and gas industry globally.

Challenges in Building Capacity

Mr. Muhamed shared that it took considerable time and effort for E&E Experts to build systems that comply with API standards. "You need to demonstrate excellent product quality, material standards, and client satisfaction. Investing in human resource training and technical upgrades is critical to meeting industry requirements," he added.

However, the challenge remains that few local companies or individuals in Uganda are familiar with these international standards. Currently, E&E Experts has only one locally trained Quality Control and Quality Management expert, highlighting the need for more investment in building local capacity.

The company has established operations in Buliisa, where it supplies repair and material services to TotalEnergies E&P, COSL (CNOOC Uganda Ltd’s drilling service provider at the Kingfisher Project), and SLB, which provides drilling services for the Tilenga project. E&E Experts is also sharing its experience with local companies to guide them on achieving international certifications like API.

Wider Implications for Uganda's Industry

Muhamed stressed the need to extend this training beyond the oil and gas sector, reaching other industries such as manufacturing and services. "This isn't just an oil and gas challenge; the entire supply chain, including suppliers in other sectors, needs to meet these standards," he said.

One of the major hurdles faced by local companies is the lack of capacity for equipment calibration and material certification. Most Ugandan suppliers do not meet API material certification requirements, leading to the importation of materials from certified suppliers abroad. This gap can negatively impact the environment and hinder effective mitigation in case of technical challenges.

Efforts to Close the Standards Gap

The Uganda National Bureau of Standards (UNBS) is mandated to ensure that all materials supplied in the country are certified, but this has not yet been fully implemented. The oil and gas sector, however, is working to bridge this gap. In 2020, UNBS and PAU signed a Memorandum of Understanding to develop these standards, but as PAU notes, building the necessary capacity is an ongoing process.

With E&E Experts' certification, more local companies may now be motivated to pursue international accreditation to tap into opportunities in the oil and gas sector. However, the cost and maintenance of these certifications remain a significant challenge for many firms.

To address this, the PAU is working with industry stakeholders to host quarterly supplier development workshops aimed at enhancing the capacity of local firms and encouraging them to obtain the necessary certifications to compete in the oil and gas sector.