Three prominent oil companies — Chorus Energy, Dubril Oil Company Limited, and Belema Oil — have admitted to owing a combined $5.5 million to the Federation Account, following revelations during an investigative hearing by the House of Representatives Public Accounts Committee.
The probe, triggered by the Auditor General for the Federation’s report, brought to light the companies’ financial liabilities on Tuesday.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), represented by Mr. Balarabe Haruna, presented detailed reports highlighting the debts owed by the companies.
According to the report, Chorus Energy owes $814,680.06, while Dubril Oil Company Limited is indebted to the tune of $3,025,193.71, consisting of $646,605.55 for crude oil by production and $2,378,588.15 for gas flare penalties.
Belema Oil has an outstanding debt 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.
Explaining the company’s indebtedness, Chorus Energy’s Chief Financial Officer, Mr. Oluseyi Simon, attributed the debt to an increase in crude oil price rates, adding that the company had paid $5.3 million so far in 2024 and promised to clear the balance before the month ends.
Similarly, Dubril Oil’s Acting Managing Director, identified simply as Mr. Clement, blamed the company’s financial struggles on reduced production in the first quarter of 2024.
He disclosed that efforts to revive operations through well workovers had been unsuccessful but assured the committee of plans to drill new wells and clear the debt by the third quarter of 2025.
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Belema Oil cited operational setbacks caused by pipeline leakage, which had forced the company to halt operations since August 2022, leading to the loss of nearly 5 million barrels of crude oil.
Its Managing Director, Ahmad Sambik, pledged the company’s commitment to resolving the debt once production resumes.
Chairman of the subcommittee, Akinlade Isaq, expressed dissatisfaction over the companies’ failure to meet their financial obligations, stressing that recovering the debts was vital to improving the country’s governance and revenue flow.
He issued a two-week ultimatum for the companies to clear their debts, warning that non-compliance would attract severe consequences.
In addition to the three companies, the committee also listed several other oil operators who failed to appear before the committee, including Conoil Producing ($4.5m), Continental Oil ($57m), Enageed Resources ($15m), and Energia Limited ($19m), among others.
The committee reaffirmed its commitment to holding all oil operators accountable, as part of efforts to strengthen transparency and revenue collection in Nigeria’s petroleum sector.