The House of Representatives Committee on Public Accounts is commencing a series of investigative hearings to ensure payment of monies owed the Federal Government by oil companies to the Federation Account.
As of the last quarter of 2024, many oil companies were reportedly owing the Federal Government approximately N9.4 trillion.
The findings followed the review of the Auditor-General’s Annual Report on the Consolidated Financial Statement for the year ended December 31, 2021, by the House of Representatives Committee on Public Accounts.
Findings by the Auditor-General’s Annual Report indicate that the amount covers unpaid royalties, concession rentals and gas flare penalties, in addition to obligations arising from production sharing contracts, repayment agreements, and modified carry arrangements despite the clear provisions of the Petroleum Industry Act (PIA), which require such debts to be settled within 30 days.
Chairman of the House Committee on Public Accounts, Bamidele Salam, summoned no fewer than 38 oil firms indicted by the report to state their side of the story in the alleged committal of the infractions.
The indicated firms comprise 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, Waltersmith Petroman Limited, Chevron Nig 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, Dubri Oil Company Limited and Esso E&P Limited (Usan, Erha).
First E&P Limited, Frontier Oil Limited, General Hydrocarbons Limited, Green Energy International Ltd, Nigeria Agip Exploration Limited (NAE), Panocean Oil Nigeria Limited (OML 147), Neconde Energy Limited, Newcross Exploration and Production Limited, Newcross Petroleum (OML 152) Network E&P Limited, Total E&P Nigeria (OML 100, 102, 52 & 99), Niger Delta Petroleum, Nigeria Petroleum Development Company (NPDC) (OML 60, 61 & 63), Lekoil Oil and Gas Investments Limited, Midwestern Oil and Gas Limited, Millenium Oil and Gas Company Limited, Seplat Energy (OML 4, 38 & 41), Oriental Energy Resources Limited are also on the list.
Others are Oando Oil Limited (OML 60, 61 & 62), Heirs Holdings, Pillar Oil Limited, Platform Petroleum Limited, Shell Petroleum Development Company (OML 27), Universal Energy Limited/Sinpec, Shoreline Natural Resources, Star Deep Water Petroleum Limited, Sahara Field Production Limited and Mobil Producing Nigeria Unlimited (OML 67 & 70).
According to Salam, the affected companies must fulfil their statutory obligations to maintain the integrity and accountability of the nation’s resources.
The spokesperson of the House, Mr. Akin Rotimi Jr. further cautioned the oil firms that failure to appear on the designated date assigned to them may result in further action being taken against them.
