Reps Summons 8 Oil Firms Over $506.5m Debt
The House of Representatives Public Accounts Committee (PAC) has expressed frustration over the failure of eight oil companies to respond to invitations regarding their combined debt of $506.5 million to the Nigerian Federation.
Despite public summons issued through major newspapers, only one company appeared before the committee on Monday (Today)
The committee has given them 72 hours to appear and explain the outstanding payments.
The Chairman of the Committee, Bamidele Salam, issued the summons after reviewing a report from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on revenue remittances by oil and gas companies. He stated:
“We have invited the affected oil companies by way of publications in The Punch, The Nation and Daily Trust newspapers, but they have failed to respond to our invitation. We have, therefore, resolved to give them 72 hours to appear before this committee and explain why they have failed to remit the outstanding liabilities. Failure to do so, we shall be compelled to invoke the relevant laws, including recommending the blacklisting of the companies from doing business in Nigeria.”
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The affected companies include Addax Petroleum, Allied Energy, Aiteo, Atlas Petroleum, Bayelsa Oil, Cavendish Petroleum, Continental Oil & Gas, Express Petroleum, Moni Pulo, Platform Petroleum, Summit Oil, Suntrust Oil, Walter Smith, and Nigeria Petroleum Development Company (NPDC), among others.
According to Salam, the debts consist of outstanding payments for crude oil, gas flaring penalties, royalty fees, and concession rentals.
He warned that failure to comply with the summons within 72 hours could lead to arrest warrants being issued against the CEOs, and the companies may be blacklisted from doing business in Nigeria.
Presenting the report to the committee, Mr. Balarabe Haruna, a representative of NUPRC, detailed how the companies accumulated the debts, stating:
“The companies have over the years failed to meet their obligations despite several reminders. Some of them have refused to make the required payments, which has led to this huge outstanding liability.”
The PAC has adjourned its hearing to Tuesday, March 4, 2025, when it will continue questioning more oil companies, including Chevron Nigeria Ltd, Chorus Energy, Conoil Plc, Shell Nigeria Exploration and Production Company, and others.
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
