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 came during an ongoing investigation by the committee, prompted by 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) outlined the debts owed by the oil firms:
Chorus Energy: $814,680.06 and ₦181,954,238.43, including:
$396,907.76 for crude oil by price
$417,772.13 for crude oil by production
Dubril Oil Company: $3,025,193.71, including:
$646,605.55 for crude oil by production
$2,378,588.15 for gas flare
Eroton Exploration & Production: $78,486,333.27, including:
$45,094,125.31 for crude oil by production
$33,392,207.96 for gas flare
$916,027.00 for concession rentals
Belema Oil: $1,703,617.68, including:
$977,793.54 for crude oil by price
$511,870.14 for gas flare
$213,954.00 for concession rentals
Oil Companies Respond
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 committee that the company had already paid $5.3 million in 2024 and would clear the remaining balance before the end of the month.
Similarly, Mr. Clement, Acting Managing Director of Dubril Oil, admitted to the outstanding debt, citing declining production in Q1 2024 as the primary cause. He explained that despite efforts to restore production, such as workovers on wells, these attempts had been unsuccessful. However, he assured lawmakers that new drilling operations would commence soon, enabling the company to clear its debt.
Clement also revealed that Dubril Oil had been in discussions with the Economic and Financial Crimes Commission (EFCC) and agreed on a payment schedule, with a resolution expected by Q3 2025.
For Belema Oil, its Managing Director, Ahmad H. Sambk, blamed operational challenges for its financial difficulties. He disclosed that the company had suffered evacuation pipeline system failures since August 2022, causing significant leakages and the loss of nearly 5 million barrels of crude oil. This led to a complete shutdown of operations, making it difficult to meet 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 the debts was not just a financial responsibility but a crucial step in 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.
Additionally, the lawmakers issued a warning to any oil companies that failed to appear for hearings, stating that non-compliance would lead to severe repercussions.
Beyond the companies present at the hearing, the committee also revealed debts owed by other oil firms that failed to appear:
Conoil Producing:
$3,884,308.56 (crude oil by production)
$708,600.06 (gas flare)
$475,785.40 (concession rentals)
Total: $4,592,908.62
Continental Oil:
$44,519,936.05 (crude oil by production)
$12,533,906.17 (gas flare)
$250,650.00 (concession rentals)
Total: $57,053,842.22
Eanageed Resources:
$11,647,300.01 (crude oil by production)
$3,353,789.90 (gas flare)
$469,552.00 (concession rentals)
Total: $15,001,089.91
Energia Limited:
$6,675,524.25 (crude oil by price)
$9,768,926.81 (crude oil by production)
$10,208.89 (gas sales)
$2,806,322.19 (gas flare)
$305,995.40 (concession rentals)
Total: $19,260,982.13
With the two-week ultimatum in place, the House Committee has made it clear that failure to pay the debts will result in further investigations and enforcement actions.
The committee also reaffirmed its commitment to holding oil companies accountable, ensuring that revenues meant for the Federation Account are duly remitted.
