Three major oil companies, Chorus Energy, Dubril Oil Company Limited, and Belema Oil, have admitted to owing a total of $5,543,491.45 to Nigeria’s Federation Account.
Their acknowledgment came during an ongoing investigation by the House of Representatives Public Accounts Committee, which is probing the issue based on findings from the Auditor General’s report.
The House Committee received detailed testimonies from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on outstanding debts owed by oil companies. Representing the commission, Mr. Balarabe Haruna outlined the financial obligations of the companies in question.
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According to the NUPRC, Chorus Energy has an outstanding debt of $814,680.06 and N181,954,238.43. This includes $396,907.76 attributed to crude oil by price and $417,772.13 for crude oil by production.
Similarly, Dubri Oil owes a total of $3,025,193.71, comprising $646,605.55 for crude oil by production and $2,378,588.15 for gas flaring penalties.
The revelations shed light on the financial obligations within the sector, raising concerns about regulatory compliance and revenue remittances.
Eroton Exploration & Production’s debt stands at $78,486,333.27, comprising $45,094,125.31 for crude oil production, $33,392,207.96 in gas flare penalties, and $916,027.00 in concession rentals.
Similarly, Belema Oil owes a total of $1,703,617.68, with $977,793.54 attributed to crude oil production costs, $511,870.14 in gas flare penalties, and $213,954.00 for concession rentals.
These outstanding payments underscore financial and regulatory concerns within the oil and gas sector, raising questions about compliance and accountability in the industry.
The Chief Financial Officer of Chorus Energy, Mr. Oluseyi Simon, has attributed the company’s outstanding debt to a surge in crude oil price rates, which increased from 0.5% to $3.5.
Speaking before the committee, Simon emphasized that Chorus Energy has remained committed to settling its financial obligations, having already paid $5.3 million in 2024 alone.
He further assured the lawmakers that the remaining balance would be fully cleared before the end of the month.
Meanwhile, Mr. Clement, the Acting Managing Director of Dubri Oil, acknowledged the debt and explained that the company’s financial difficulties stemmed from a decline in production during the first quarter of 2024.
He emphasized that the company had been trying to mitigate the situation through workovers on its wells, but the efforts were unsuccessful.
However, Clement assured the committee that Dubri Oil planned to begin drilling new wells and, once production increased, would settle the outstanding debt.
He further revealed that Dubri Oil had been in discussions with the Economic and Financial Crimes Commission (EFCC) and had agreed to a payment schedule, with an expected resolution by the third quarter of 2025.
Belema Oil also confirmed the debt, citing operational challenges as the cause of the indebtedness.
According to the company’s Managing Director, Ahmad H. Sambk said Belema Oil had been unable to meet its production targets since August 2022 due to issues with the evacuation pipeline system, which had experienced significant leakages, leading to the loss of nearly 5 million barrels of crude oil.
These challenges had resulted in a complete shutdown of operations, preventing the company from fulfilling its financial obligations.
Chairman of the investigation sub-committee, Hon. Akinlade Isaq, expressed anger over the failure of oil companies to meet their financial obligations and stressed the urgency of retrieving the owed funds.
“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 then unanimously gave the oil companies a strict two-week ultimatum to settle their debts.
The committee also issued a warning to any oil companies that failed to respond to invitations for hearings, stressing that non-compliance would lead to severe repercussions.
In addition to the aforementioned companies, the committee also disclosed the indebtedness of other oil operators that failed to appear today as follows;
“For Conoil Producing, the company owes $3,884,308.56 for crude oil by production and $708,600.06 for Gas flare and $475,785.40, bringing the total to $4,592,908.62.
Continental Oil has a total debt of $57,053,842.22, which includes $44,519,936.05 for crude oil by production, $12,533,906.17 for gas flare and $250,650.00 for concession rentals.
Enageed Resources owes 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 owes a total of $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.
