Three oil companies have been given a two-week deadline to settle a $5.5 million debt owed to the federation account
Three oil companies- Chorus Energy, Dubril Oil Company Limited, and Belema Oil- have admitted to owing Nigeria a total of $5,543,491.45.
Their acknowledgment came during an ongoing probe by the House of Representatives Public Accounts Committee (PAC), which was initiated following an audit report from the Auditor General.
Parliament Reports recalls that the PAC had launched a week long investigation into the outstanding debt of N9.4 trillion owed to the federation account by 49 oil companies.
Speaking during the integrative hearing, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), represented by Mr. Balarabe Haruna, presented a breakdown of the outstanding debts before the committee.
According to NUPRC’s records:
Chorus Energ owes $814,680.06 and ₦181,954,238.43, consisting of $396,907.76 for crude oil by price and $417,772.13 for crude oil by production.
Dubril Oil has a debt of $3,025,193.71, which includes $646,605.55 for crude oil by production and $2,378,588.15 for gas flare.
Eroton Exploration & Production owes a substantial $78,486,333.27, made up of $45,094,125.31 for crude oil by production, $33,392,207.96 for gas flare, and $916,027.00 for concession rentals.
Belema Oil is indebted to the tune of $1,703,617.68, including $977,793.54 for crude oil by price, $511,870.14 for gas flare, and $213,954.00 for concession rentals.
Companies Respond to Debt Allegations
In defense, the Chief Financial Officer of Chorus Energy, Mr. Oluseyi Simon, attributed the company’s outstanding balance to an increase in the crude oil price rate.
He assured the committee that Chorus Energy has been consistent in settling its liabilities, revealing that the company had already paid $5.3 million in 2024 alone. Mr. Simon pledged that the remaining balance would be cleared before the end of the month.
Similarly, Dubril Oil’s Acting Managing Director, Mr. Clement, acknowledged the company’s financial obligations, attributing its struggles to a decline in production in the first quarter of 2024.
He explained that while the company attempted to mitigate the situation through workovers on its wells, those efforts were unsuccessful. However, he assured lawmakers that Dubril Oil planned to commence drilling new wells and would settle the outstanding debt once production levels improved.
Clement further disclosed that Dubril Oil had engaged the Economic and Financial Crimes Commission (EFCC) in negotiations and agreed to a payment schedule, with a resolution expected by the third quarter of 2025.
For its part, Belema Oil, through its Managing Director, Ahmad H. Sambk, confirmed the company’s indebtedness but cited operational challenges as the primary cause.
According to Sambk, Belema Oil has faced difficulties meeting production targets since August 2022 due to persistent leakages in its evacuation pipeline system, resulting in the loss of nearly 5 million barrels of crude oil. This, he explained, led to a complete shutdown of operations, making it impossible to fulfill financial obligations.
ALSO READ: Reps to probe oil companies over ₦9.4 trn public debt
Expressing frustration over the non-payment of these debts, Chairman of the investigation sub-committee, Rep. Akinlade Isaq (APC Ogun), stressed the importance of recovering the funds.
“Paying off these outstanding debts is not just a matter of financial responsibility, it is a critical step toward improving governance in Nigeria,” he stated.
Consequently, the committee issued a strict two-week deadline for the oil companies to settle their debts.
Furthermore, the lawmakers warned that any oil company failing to honor invitations for hearings would face severe repercussions.
More Oil Companies Identified as Debtors
Beyond the three companies that testified, the committee also revealed that other oil operators, who failed to appear before it, also owed significant sums. These include:
“Conoil Producing owes $4,592,908.62, comprising $3,884,308.56 for crude oil by production, $708,600.06 for gas flare, and $475,785.40 for concession rentals.
“Continental Oil owes $57,053,842.22, including $44,519,936.05 for crude oil by production, $12,533,906.17 for gas flare, and $250,650.00 for concession rentals.
“Also owing is Enageed Resources with a total of $15,001,089.91, consisting of $11,647,300.01 for crude oil by production, $3,353,789.90 for gas flare, and $469,552.00 for concession rentals.
“Energia Limited also owes a total $19,260,982.13, made up of $6,675,524.25 for crude oil by price, $9,768,926.81 for crude oil by production, $10,208.89 for gas sales, $2,806,322.19 for gas flare, and $305,995.40 for concession rentals.”
