By Chukwudi Obasi, Abuja
The House of Representatives Public Accounts Committee (PAC) has expressed frustration over several oil companies’ failure to appear before it to explain their outstanding financial obligations to the Federation.
Through public notices published in the media, the committee had summoned nine oil companies to appear before it yesterday to clarify their debts.
However, only one company honoured the invitation, while the others failed to show up without providing any explanations or submissions.
The companies expected to appear included Addax Petroleum Exploration Nigeria Ltd, AITEO Group, All Grace Energy, Amalgamated Oil Company Nigeria Limited, Amni International Petroleum Development Company Limited, Belemaoil Producing Ltd, Bilton Energy Limited, Britannia-U, and Waltersmith Petroman Limited.
Expressing his disappointment, the Chairman of the Investigation Sub-Committee, Hon. Isiaq Akinlade, noted that the summons came at a time when the Nigerian government was struggling with a massive budget deficit, having recently approved a ₦54.9 trillion budget.
He stressed that these companies’ refusal to settle their debts raises concerns about the government’s ability to meet its fiscal targets and fund critical national projects.
He questioned how the country would finance its budget if companies continued to default on their financial obligations, stating that their actions undermine the fiscal integrity of the Federation and delay national development.
Providing details on the debts owed, Balarabe Haruna, a representative of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), disclosed that the total outstanding amount from the affected oil companies stands at $506,565,187.96.
Breaking down the figures, he revealed that Britannia-U OML owes a total of $1,646,644.58, consisting of $1,062,417.03 for crude oil by price and $584,227.55 for crude oil by production. Waltersmith OML 16 has a total debt of $8,739,281.20, covering $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.
Similarly, All Grace Energy OML 17 owes $2,043,083.98, which includes $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, $1,668,090.00 for gas flares, and $34,154.58 for concession rentals. The debt for Amalgamated Oil OML 156 includes $2,088.91 for concession rentals and $226,423.83 for gas sales, totalling $228,512.74.
Belemaoil Producing Ltd is indebted to $1,703,617.68, consisting of $977,793.54 for crude oil by price, $511,870.14 for gas flares, and $213,954.00 for concession rentals.
Further highlighting the debt burden, AITEO Group owes $34,861,202.49, broken down into $27,197,780.87 for crude oil by price, $139,308.15 for gas sales, $7,381,653.47 for gas flares, and $142,460.00 for concession rentals.
Addax Petroleum Exploration OML 126 is indebted to $17,575,991.14, with $17,447,255.24 owed for gas flares and $128,735.90 for concession rentals.
Bilton Energy Limited, on its part, has an outstanding liability of $5,044,514.57, covering $4,123,850.60 for crude oil by price and $920,663.97 for gas flares.
Following these companies’ failure to appear before the committee, the Public Accounts Committee has issued a 72-hour ultimatum for them to present themselves and provide explanations for their debts.
The committee warned that failure to comply would result in further actions, including a directive ordering the companies to settle their liabilities within seven days.
The committee has adjourned its session to Tuesday, March 4, 2025, to receive another set of oil companies, including 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, and Eroton Exploration & Production Company Limited.
The PAC reaffirmed its commitment to ensuring financial accountability and recovering all outstanding debts owed to the Federation.
