By Mercy Aikoye
Three major oil companies, Chorus Energy, Dubril Oil Company Limited, and Belema Oil, have acknowledged owing a combined total of $5,543,491.45 to Nigeria’s Federation Account. This admission 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), which outlined the outstanding debts of the companies. According to NUPRC, Chorus Energy owes $814,680.06 and N181,954,238.43, while Dubril Oil owes $3,025,193.71, and Belema Oil owes $1,703,617.68.
The Chief Financial Officer of Chorus Energy, Mr. 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 assured the committee that the remaining balance would be cleared before the end of the month. Dubril Oil’s Acting Managing Director, Mr. Clement, attributed the company’s financial difficulties to a decline in production during the first quarter of 2024.
Clement revealed that Dubril 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 Belema Oil’s Managing Director, Ahmad H. Sambk, the company had been unable to meet its production targets since August 2022 due to issues with the evacuation pipeline system. This 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. He stressed the urgency of retrieving the owed funds, stating that “paying off these outstanding debts is not just a matter of financial responsibility, it is a critical step toward improving governance in Nigeria.”
The committee 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, including Conoil Producing, Continental Oil, Enageed Resources, and Energia Limited, which owe a combined total of over $100 million.
