Reps give 72-hour ultimatum to oil CEOs over $506.6m debt to federation

The House of Representatives on Monday issued a 72-hour ultimatum to the Chief Executive Officers of eight oil companies to appear before its Committee on Public Accounts over the $506.565 million allegedly owed to the Federation.

The House Committee on Public Accounts, chaired by Rep. Bamidele Salam (PDP-Osun), had the penultimate week invited the Accounting Officers of 48 oil companies to respond to the 2021 audit queries issued by the Office of the Auditor General of the Federation (oAuGF).

Speaking during the scheduled investigative hearing of non-responding oil companies on Monday, Chairman of the Investigation Sub-Committee, Hon. Isiaq Akinlade, expressed grave displeasure over the refusal of CEOs of eight oil companies to attend the investigative hearing.

While noting that only one company responded to the invitation, Hon. Akinlade observed that the Committee’s summons come at a time when the Nigerian government is grappling with a significant budget deficit, having just approved a budget of N54.9 trillion.

He said the refusal of these oil companies to settle their debts raises concerns about the government’s ability to meet its fiscal targets and adequately fund critical national projects.

“How do we fund this budget if these companies continue to refuse to settle their obligations when due? Their actions undermine the fiscal integrity of the Federation and delay the progress of national development.”

A representative from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Balarabe Haruna, presented the details of the companies’ outstanding debts to the Federation Account, which amounted to a substantial total of $506,565,187.96.

The breakdown is as follows:

• Britannia-U OML owes $1,062,417.03 for crude oil by price and $584,227.55 for crude oil by production, bringing the total to $1,646,644.58.

• Waltersmith OML 16 has a total debt of $8,739,281.20, which includes $2,844,273.48 for crude oil by price, $5,277,193.41 for crude oil by production, $372,078.31 for gas flares, and $245,736.00 for concession rentals.

• All Grace Energy OML 17 owes a total of $2,043,083.98, consisting of $812,804.88 for crude oil by price, $533,301.40 for crude oil by production, and $696,977.70 for gas flares.

• Amni International Petroleum has an outstanding debt of $434,948,763.41, with $433,246,518.83 owed for crude oil by production, $1,668,090 for gas flares, and $34,154.58 for concession rentals.

• Amalgamated Oil OML 156’s debt includes $2,088.91 for concession rentals and $226,423.83 for gas sales, totalling $228,512.74.

• Belemaoil owes a total of $1,703,617.68, made up of $977,793.54 for crude oil by price, $511,870.14 for gas flares, and $213,954.00 for concession rentals.

• AITEO has a debt of $34,861,202.49, consisting of $27,197,780.87 for crude oil by price, $139,308.15 for gas sales, $7,381,653.47 for gas flares, and $142,460 for concession rentals.

• Addax Exploration OML 126 owes $17,575,991.14, with $17,447,255.24 for gas flares and $128,735.90 for concession rentals.

• Bilton owes a total of $5,044,514.57, made up of $4,123,850.60 for crude oil by price and $920,663.97 for gas flares.

The total outstanding debts from the aforementioned oil companies amount to $506,565,187.96, underscoring the significant financial burden on the Federation.

To this end, the lawmakers unanimously gave the listed companies 72 hours to appear and provide justifications for their debts.

Should they fail to comply, the committee warned it would have no choice but to take further legislative action, which could include issuing a ruling directing the companies to settle their outstanding liabilities within seven days.

The Committee adjourned until tomorrow, Tuesday, 4 March 2025, for the appearance of the following oil companies: Chevron Nigeria Ltd (OML 90, 95, 49), Chorus Energy, Conoil Plc, Continental Oil & Gas Company Ltd., Dubri Oil Company Limited, Enageed Resources Limited, Shell Nigeria Exploration and Production Company, Energia Limited, Eroton Exploration & Production Company Limited, and Dubri Oil Company Limited.