Three major oil companies, Chorus Energy, Dubril Oil Company Limited, and Belema Oil, have admitted to non-remittance of $5.5m to Nigeria’s Federation Account.
This acknowledgment came during an ongoing investigation by the House of Representatives Public Accounts Committee, prompted by the Auditor General’s report.
The committee heard detailed testimonies from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), presented by Balarabe Haruna, which outlined the outstanding debts of the companies.
According to NUPRC, the debts are as follows: Chorus Energy owes a total of $814,680.06 and N181,954,238.43, comprising $396,907.76 for crude oil by price and $417,772.13 for crude oil by production.
Dubri Oil owes $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 $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 owes $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.
In response, the Chief Financial Officer of Chorus Energy, Oluseyi Simon, explained that the company’s debt arose after an increase in the crude oil price rate from 0.5% to $3.5.
He noted that the company has consistently paid its liabilities and that it had already paid $5.3 million in 2024 alone.
Simon assured the committee that the remaining balance would be cleared before the end of the month.
On his part, the Acting Managing Director Dubil 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 assured the committee that Dubri Oil planned to begin drilling new wells and, once production increased, would settle the outstanding debt.
Belema Oil also confirmed the debt, citing operational challenges as the cause of the indebtedness.
Chairman of the investigation sub-committee, Akinlade Isaq, expressed displeasure over the failure of oil companies to meet their financial obligations and stressed the urgency of retrieving the owed funds.
The committee then gave the oil companies a two-week ultimatum to settle their debts with a warning to oil firms that failed to appear that non compliance will lead to severe repercussions.
