The SERVTEC International Group aimed to acquire a capital stake to strengthen its position in the East African region and to be referenced by local authorities as a player in projects driven by the development of the oil and gas sector in the sub-region.
Context :
Target : African private group Q-Sourcing, a service provider specializing in outsourced management and professional training of human resources dedicated to industries in East Africa, headquartered in Uganda.
Requester: SERVTEC International Group provides consulting services and assisted project management for outsourced workforce management, HSE training, and fire safety.
Sector: Consulting, Recruitment, Training, and Comprehensive Project Management for the Industry
Challenge: As part of SERVTEC International Group's growth strategy in East Africa, the objective was to establish a strategic partnership with a strong local player to gain access to the East African oil market, particularly large-scale projects such as the EACOP and TILENGA developments related to the exploitation of oil resources in the Lake Albert Basin, specifically in the Buliisa and Nwoya districts.
Solution provided:
Initial diagnosis: Identification of a strategic need for a partnership with a recognized local player, capable of facilitating integration into calls for tenders linked to the EACOP and TILENGA projects.
Key actions:
Direct contact by telephone with the Managing Director of Q-Sourcing Group, based in Uganda, to present an initial business partnership offer.
Negotiations with the shareholders of the African group, quickly leading to a joint venture (JV) proposal in the form of the acquisition of 49% of Q-Sourcing shares.
Finalization of the agreement in 3 to 4 months to merge the activities under a new joint entity Q Sourcing Servtec.
Listing of the new entity with the Petroleum Authority of Uganda in the National Supplier Database, positioning the group as a key supplier for TOTAL EP and other players supported by the EACOP and TILENGA projects.
Result :
Measured impact
Creation of a joint entity ready to intervene in projects with an estimated value of USD 8 billion.
Strategic integration into the national register of oil service providers, opening access to TOTAL EP's pre-tenders for the construction of the 1,400 km EACOP pipeline.
Other benefits
-
Enhancing the credibility and brand recognition of SERVTEC International Group in East Africa.
-
Strategic positioning as a local/international player in a competitive oil sector.
-
A solid foundation for future development through a JV structure tailored to local needs.
Key lesson:
This project highlighted the value of a direct and strategic approach in fostering meaningful discussions with local partners. It also showcased SERVTEC Group’s agility in swiftly negotiating capital acquisitions and adapting to the demands of large-scale industrial projects in East Africa, all while ensuring full compliance with local regulations.
