Three oil companies, Chorus Energy, Dubri Oil Company Limited, and Belema Oil, have publicly acknowledged owing the Nigerian federal government a combined sum of $5,543,491.45. This admission occurred during an ongoing investigation by the Public Accounts Committee of the House of Representatives, which was initiated following a report by the Auditor General. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) provided detailed figures of the outstanding debts, highlighting specific amounts owed for crude oil by price, crude oil by production, gas flaring, and concession rentals.
Belema Oil attributed its financial shortfall to significant operational challenges, specifically, issues with the evacuation pipeline system since August 2022. The company’s Managing Director, Ahmad Sambk, explained that substantial leakages led to the loss of nearly five million barrels of crude oil, forcing a complete shutdown of operations and preventing the company from meeting its financial obligations.
Chorus Energy’s Chief Financial Officer, Oluseyi Simon, clarified that their debt resulted from an increase in the crude oil price rate. He emphasized the company’s commitment to fulfilling its liabilities, noting that $5.3 million had already been paid in 2024, and assured the committee that the remaining balance would be settled by the end of the current month.
Dubri Oil’s Acting Managing Director, Clement, cited a decline in production during the first quarter of 2024 as the primary cause of their indebtedness. He explained that efforts to mitigate the situation through well workovers were unsuccessful, but the company plans to drill new wells to increase production and subsequently settle the outstanding debt. He also revealed that Dubri Oil had engaged in discussions with the Economic and Financial Crimes Commission (EFCC) and agreed to a payment schedule, with full resolution expected by the third quarter of 2025.
Hon. Akinlade Isaq, the Chairman of the investigation sub-committee, expressed strong dissatisfaction with the oil companies’ failure to meet their financial obligations. He stressed the importance of recovering the owed funds for improved governance in Nigeria. Consequently, the committee issued a strict two-week ultimatum to the oil companies to settle their debts.
