The House of Representatives Committee on Public Accounts has issued a two-week ultimatum to three major oil companies—Chorus Energy, Dubril Oil Company Limited, and Belema Oil—to settle their outstanding debt of $5,543,491.45 owed to Nigeria’s Federation Account.
The directive was issued during an ongoing investigation by the committee, following a report from the Auditor General of the Federation. Presenting details before the committee, Mr Balarabe Haruna of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revealed that Chorus Energy owes a total of $814,680.06 and ¦ 181,954,238.43. This amount includes $396,907.76 for crude oil by price and $417,772.13 for crude oil by production.
Dubril Oil Company has an outstanding debt of $3,025,193.71, comprising $646,605.55 for crude oil by production and $2,378,588.15 for gas flare penalties. Belema Oil is also in debt, with a total of $1,703,617.68, which includes $977,793.54 for crude oil by price, $511,870.14 for gas flare, and $213,954.00 for concession rentals.
In response to the committee’s findings, the Chief Financial Officer of Chorus Energy, Mr Oluseyi Simon, acknowledged the debt, attributing it to an increase in crude oil price rates from 0.5% to $3.5. He assured the lawmakers that the company had already paid $5.3 million in 2024 and would clear the remaining balance before the end of the month.
Similarly, the Acting Managing Director of Dubril Oil, Mr Clement, admitted to the outstanding debt, citing declining production in the first quarter of 2024 as the primary cause. He explained that despite efforts to restore production through well workovers, these attempts had been unsuccessful.
However, he assured lawmakers that new drilling operations would commence soon, enabling the company to clear its debt. Clement further disclosed that Dubril Oil had been in discussions with the Economic and Financial Crimes Commission (EFCC) and had agreed on a payment schedule, with a resolution expected by the third quarter of 2025.
For Belema Oil, its Managing Director, Ahmad H. Sambk, attributed the company’s financial difficulties to operational challenges. He revealed that the company had suffered evacuation pipeline system failures since August 2022, leading to significant leakages and the loss of nearly five million barrels of crude oil. This resulted in a complete shutdown of operations, making it difficult for the company to meet its financial obligations.
Chairman of the Investigation Sub-Committee, Hon. Akinlade Isaq, expressed anger over the failure of oil companies to remit funds owed to the government. He stressed that repaying these debts was not just a financial responsibility but a crucial step towards improving governance in Nigeria.
“Paying off these outstanding debts is not just a matter of financial responsibility—it is a critical step toward improving governance in Nigeria,” Isaq stated. The committee unanimously gave the oil firms a strict two-week ultimatum to settle their debts.
Beyond the companies present at the hearing, the committee also identified several other oil firms with outstanding debts. Conoil Producing owes a total of $4,592,908.62, made up of $3,884,308.56 for crude oil by production, $708,600.06 for gas flare, and $475,785.40 for concession rentals.
Continental Oil has an even larger outstanding liability, with a total debt of $57,053,842.22. This includes $44,519,936.05 for crude oil by production, $12,533,906.17 for gas flare, and $250,650.00 for concession rentals.
Eanageed Resources is also indebted, with a total of $15,001,089.91. This amount consists 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 has accumulated a total debt of $19,260,982.13. This includes $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.
With the two-week ultimatum in place, the House Committee has made it clear that failure to pay these debts will result in further investigations and enforcement actions. Lawmakers also issued a warning to any oil companies that failed to appear for hearings, stating that non-compliance would lead to severe repercussions.
The committee reaffirmed its commitment to holding oil companies accountable and ensuring that revenues meant for the Federation Account are duly remitted.
