Reps panel criticises nine oil companies for ignoring invitations to defend ‘$506m debt’

The house of representatives public accounts committee has expressed frustration over the failure of oil companies to honour their invitation on the outstanding debts to the federation.

In a statement on Sunday, the committee had summoned nine oil companies for a hearing scheduled to be held between March 3 to clarify their financial obligations.

The companies scheduled to appear before the committee today included Addax Petroleum Exploration Nigeria Ltd, AITEO Group, All Grace Energy, and Amalgamated Oil Company Nigeria Limited.

Others are Amni International Petroleum Development Company Limited, Belemaoil Producing Ltd, Bilton Energy Limited, and Britannia-U, and Waltersmith Petroman Limited.

However, at the resumption of the hearing on Monday, only one company responded to the invitation, as other companies were absent without any explanation or submission.

Speaking at the plenary, Isiaq Akinlade, chairman of the investigation sub-committee, said 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 the 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 as at when due?” Akinlade said.

“Their actions undermine the fiscal integrity of the Federation and delay the progress of national development.”

‘$506M DEBT OWED BY NINE FIRMS’

Balarabe Haruna, a representative from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), presented the details of the companies’ outstanding debts to the federation account, which amounted to a substantial total of $506,791,611.79. 

“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,” Haruna said.

“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.

“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.”

The public accounts committee unanimously gave the listed companies 72 hours to appear and provide justifications for their debts. 

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