Oil Debt: Key Facts from Recent Investigations

Three oil firms, Chorus Energy, Dubril Oil Company Limited, and Belema Oil, have acknowledged a debt of $5,543,491.45 to the federal government. The companies disclosed this information during the ongoing investigation by the Public Accounts Committee of the House of Representatives, which was triggered by the Auditor General’s report. Mr. Balarabe Haruna, representing the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), detailed the companies’ outstanding debts. 

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He stated, “Chorus Energy has a total debt of $814,680.06 and N181,954,238.43, which includes $396,907.76 for crude oil by pricing and $417,772.13 for crude oil based on production. “Dubri Oil has a debt of $3,025,193.71, which consists of $646,605.55 for crude oil based on production and $2,378,588.15 for gas flare. “Eroton Exploration & Production has an outstanding amount of $78,486,333.27, which is made up of $45,094,125.31 for crude oil based on 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 pricing, $511,870.14 for gas flare, and $213,954.00 for concession rentals.” 

In response, Belema Oil acknowledged its share of the oil industry debt, attributing it to operational difficulties The company’s Managing Director, Ahmad Sambk, mentioned that Belema Oil has struggled to meet its production goals since August 2022 due to issues with the evacuation pipeline system, which suffered significant leakages, resulting in the loss of nearly 5 million barrels of crude oil. 

In response, Belema Oil acknowledged the debt, attributing it to operational difficulties. The company’s Managing Director, Ahmad Sambk, mentioned that Belema Oil has struggled to meet its production goals since August 2022 due to issues with the evacuation pipeline system, which suffered significant leakages, resulting in the loss of nearly 5 million barrels of crude oil. 

The chairman of the investigation sub-committee, Hon. Akinlade Isaq, expressed frustration over the oil companies’ failure to fulfill their financial duties and emphasized the importance of recovering the owed funds. “Addressing these outstanding debts is not merely a financial obligation; it is an essential step toward enhancing governance in Nigeria,” Isaq remarked. Consequently, the committee unanimously issued the oil companies a strict two-week deadline to settle their oil industry debt