The House of Representatives Public Accounts Committee has revealed that three oil companies, Chorus Energy, Dubril Oil Company Limited, and Belema Oil, have acknowledged owing a combined sum of over $5.5 million to the Federation Account.
This disclosure came during an investigation(oil and gas industriy) spurred by the Auditor General for the Federation’s report, with the committee hearing detailed testimonies from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC)
READ:https://naijanewswatch.com/security-vital-for-economic-growth/
The NUPRC, through Mr. Balarabe Haruna, presented a breakdown of the companies’ outstanding debts. Chorus Energy owes $814,680.06, while Dubri Oil’s debt totals $3,025,193.71, comprising amounts for crude oil production and gas flaring. Belema Oil is indebted to the tune of $1,703,617.68, covering crude oil pricing, gas flaring, and concession rentals. Notably, Eroton Exploration & Production also has a significant debt of $78,486,333.27, though their situation was not the primary focus of the discussed $5.5 million.
In response to the committee, Chorus Energy’s Chief Financial Officer, Mr. Oluseyi Simon, attributed their debt to an increase in crude oil price rates. He assured the committee that the company had been consistently paying its liabilities, having already paid $5.3 million in 2024, and pledged to settle the remaining balance by the end of the month.
Dubri Oil’s Acting Managing Director, identified only as Mr. Clement, explained that their financial difficulties stemmed from a decline in production during the first quarter of 2024. He stated that efforts to mitigate this through well workovers had been unsuccessful but assured the committee of plans to drill new wells and settle the debt once production increases. He also mentioned ongoing discussions with the Economic and Financial Crimes Commission and an agreed-upon payment schedule, with resolution expected by the third quarter of 2025.https://naijanewswatch.com/security-vital-for-economic-growth/
Belema Oil’s Managing Director, Ahmad Sambik, corroborated their debt, citing operational challenges as the cause. He detailed that the company had been unable to meet production targets since August 2022 due to significant leakages in the evacuation pipeline system, resulting in the loss of nearly 5 million barrels of crude oil and a complete shutdown of operations, hindering their ability to meet financial obligations.
Akinlade Isaq, the chairman of the investigation subcommittee, expressed strong disapproval of the oil companies’ failure to meet their financial obligations. He emphasized the urgency of retrieving the owed funds, stating that it was critical for improving governance in Nigeria. The committee subsequently issued a two-week ultimatum to the three companies to settle their debts.
The committee also issued a stern warning to oil companies that failed to respond to hearing invitations, threatening severe repercussions for non-compliance. Additionally, they disclosed the indebtedness of other oil operators who did not appear, including Conoil Producing, Continental Oil, Enageed Resources, and Energia Limited, with substantial amounts owed for crude oil production, gas flaring, and concession rentals.
The committee’s actions underscore the importance of accountability and transparency in the oil sector, aiming to ensure that all companies fulfill their financial responsibilities to the Federation Account. The investigation highlights the ongoing efforts to recover outstanding debts and enforce compliance within the industry.
