$1.7bn oil debt: Reps move to recover $4.02m royalties, gas flare penalties

…Issue 5 days ultimatum to OML18 Resources Limited

The House of Representatives on Wednesday directed OML18 Resources Limited, formerly Sahara Field Production Limited to remit $4.020 million to the Federation Account within five days.

Chairman, House Committee on Public Accounts, Rep. Bamidele Salam issued the directive in Abuja, during the resumed investigative hearing into outstanding debts owed by oil companies to the Federation Account.

The investigation, based on findings from the 2021 Audit Report and data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), involving 45 oil companies collectively owing $1.7 billion in outstanding liabilities.

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During the session, NUPRC representative Balarabe Haruna reported that OML18 Resources owes a total of $20,232,978.58 — comprising $17,370,619.89 in crude oil royalties and $2,862,358.69 in gas flare penalties.

He added that the company also owes N173,707,943.05 in gas sales revenue.

Responding to the allegations, Team Lead of OML18 Resources’ Commercial Department, Mrs. Olutobi Dairo who acknowledged the debt, explained that NUPRC is the custodian of the relevant figures is in the position to confirm the accuracy of the liabilities.

Rep. Salam who emphasised the seriousness of the matter, said: “The money owed to the Federation Account is significant and Nigeria needs the money. We take it that you have confirmed the NUPRC’s claims.”

To this end, the Committee resolved that 20% of the total amount equivalent to $4.02 million must be paid within 5 days.

The lawmakers also instructed OML18 Resources to reconcile its accounts with the asset operator within 14 days and report back to the Committee with a breakdown of the remaining liabilities.

 

NIGERIAN TRIBUNE