ABUJA, March 5 (AGCNewsNet) – 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, following an ongoing investigation by the House of Representatives Public Accounts Committee.

The companies acknowledged their financial obligations during a hearing prompted by findings in the Auditor General’s report. Representatives from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) provided details on the debts, raising concerns over compliance within the oil sector.

According to NUPRC, Chorus Energy owes $814,680.06 and N181,954,238.43, which includes $396,907.76 for crude oil by price and $417,772.13 for crude oil by production. Dubril Oil has an outstanding balance of $3,025,193.71, attributed to $646,605.55 for crude oil production and $2,378,588.15 in gas flaring penalties. Similarly, Belema Oil owes $1,703,617.68, comprising $977,793.54 for crude oil production, $511,870.14 in gas flare penalties, and $213,954.00 for concession rentals.

In addition to these firms, Eroton Exploration & Production was found to owe $78,486,333.27, while other oil operators, including Conoil Producing, Continental Oil, Enageed Resources, and Energia Limited, collectively owe tens of millions of dollars in unpaid dues.

During the hearing, Chorus Energy’s Chief Financial Officer, Oluseyi Simon, attributed the company’s outstanding debt to fluctuations in crude oil prices, stating that the firm had already paid $5.3 million in 2024 and pledged to clear the balance by month-end. Dubril Oil’s Acting Managing Director, Mr. Clement, blamed financial difficulties on a production decline in early 2024, adding that the company had been in talks with the Economic and Financial Crimes Commission (EFCC) to establish a payment schedule. He assured lawmakers that the debt would be cleared by the third quarter of 2025. Belema Oil's Managing Director, Ahmad H. Sambk, cited evacuation pipeline leaks since August 2022, which resulted in the loss of nearly 5 million barrels of crude oil and forced a shutdown of operations.

Chairman of the investigation sub-committee, Hon. Akinlade Isaq, expressed frustration over the failure of oil companies to meet their financial obligations, stressing that the funds were critical for national development. “Paying off these outstanding debts is not just a matter of financial responsibility; it is a critical step toward improving governance in Nigeria,” he said. The committee issued a two-week ultimatum for the firms to settle their debts and warned of severe repercussions for those failing to comply.

Stay connected with AGC NewsNet for the latest news from Africa.