Three major oil companies—Chorus Energy, Dubri Oil Company Limited, and Belema Oil—have admitted to owing a total of $5,543,491.45 to Nigeria’s Federation Account. This admission was made during an ongoing investigation by the House of Representatives Public Accounts Committee, prompted by the Auditor General’s report.
The committee received detailed testimonies from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), presented by Mr. Balarabe Haruna, which outlined the outstanding debts of the companies.
According to NUPRC, the debts are as follows: Chorus Energy owes a total of $814,680.06 and N181,954,238.43, broken down into $396,907.76 for crude oil by price and $417,772.13 for crude oil by production.
Dubri Oil owes $3,025,193.71, including $646,605.55 for crude oil by production and $2,378,588.15 for gas flare.
Eroton Exploration & Production owes $78,486,333.27, made up of $45,094,125.31 for crude oil by production, $33,392,207.96 for gas flare, and $916,027.00 for concession rentals.
Belema Oil owes $1,703,617.68, which includes $977,793.54 for crude oil by price, $511,870.14 for gas flare, and $213,954.00 for concession rentals.
In response, the Chief Financial Officer of Chorus Energy, Mr. Oluseyi Simon, explained that the company’s debt arose due to an increase in crude oil prices from 0.5% to $3.5. He noted that the company had consistently met its financial obligations, paying $5.3 million in 2024 alone, and assured the committee that the remaining balance would be cleared before the end of the month.
Mr. Clement, the Acting Managing Director of Dubri Oil, also acknowledged the debt and explained that the company’s financial challenges stemmed from a decline in production during the first quarter of 2024. Despite efforts to mitigate the situation through workovers on its wells, these efforts were unsuccessful. However, Clement assured the committee that Dubri Oil planned to begin drilling new wells and would settle the outstanding debt once production increased. He further revealed that Dubri Oil had been in discussions with the Economic and Financial Crimes Commission (EFCC) and had agreed to a payment schedule, with a resolution expected by the third quarter of 2025.
Belema Oil’s Managing Director, Ahmad H. Sambk, confirmed the debt, attributing it to operational challenges. He explained that the company had been unable to meet its production targets since August 2022 due to issues with the evacuation pipeline system, which experienced significant leakages, resulting in the loss of nearly 5 million barrels of crude oil. This led to a complete shutdown of operations, preventing the company from meeting its financial obligations.
Chairman of the investigation sub-committee, Hon. Akinlade Isaq, expressed frustration over the failure of oil companies to meet their financial responsibilities and emphasized the urgency of recovering the owed funds. “Paying off these outstanding debts is not just a matter of financial responsibility, it is a critical step toward improving governance in Nigeria,” Isaq stated. The committee then issued a strict two-week ultimatum for the oil companies to settle their debts.
The committee also warned any oil companies that fail to respond to invitations for hearings, stressing that non-compliance would lead to severe repercussions.
In addition to the aforementioned companies, the committee disclosed the indebtedness of other oil operators who failed to appear at the hearing:
Conoil Producing owes $3,884,308.56 for crude oil by production, $708,600.06 for gas flare, and $475,785.40, totaling $4,592,908.62.
Continental Oil has a total debt of $57,053,842.22, which includes $44,519,936.05 for crude oil by production, $12,533,906.17 for gas flare, and $250,650.00 for concession rentals.
Enageed Resources owes $15,001,089.91, made up of $11,647,300.01 for crude oil by production, $3,353,789.90 for gas flare, and $469,552.00 for concession rentals.
Energia Limited owes a total of $19,260,982.13, which includes $6,675,524.25 for crude oil by price, $9,768,926.81 for crude oil by production, $10,208.89 for gas sales, $2,806,322.19 for gas flare, and $305,995.40 for concession rentals.
