House Public Accounts Committee Calls Out 8 Oil Companies For $506.5 Million Indebtedness To Federation

The House of Representatives Public Accounts Committee (PAC) has expressed anger at several oil companies for failing to honor their invitation to explain their outstanding debts to the Federation.

In a public announcement made through The Punch, The Nation and Daily Trust newspapers, the committee had summoned nine oil companies to appear before them today, Monday, March 3, 2025, to clarify their financial obligations.

However, only one company responded to the invitation, leaving the others absent without any explanation or submission.

The companies scheduled to appear before the committee 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.

In a pointed remark, the Chairman of the Investigation Sub-Committee, Hon. Isiaq Akinlade said 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 54.9 trillion naira.

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.

According to him, “How do we fund this budget if these companies continue to refuse to settle their obligations as at 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:

“For Britannia-U OML, the company 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, $1,668,090.00 for gas flares, and $34,154.58 for concession rentals.

He added, “For Amalgamated Oil OML 156, the company’s debt includes $2,088.91 for concession rentals and $226,423.83 for gas sales, totaling $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 $142,460.00 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.

Finally, 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,” he explained.

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

The Public Accounts Committee unanimously given 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 action, which could include Issuing warrant of arrests against the CEO of the companies, blacklisting them from doing business in Nigeria.

The Committee adjourned till tomorrow, Tuesday, March 4, 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.