House Committee orders OML18 resources to pay $4 million in oil debt within five days

The House of Representatives Public Accounts Committee (PAC) has given oil firm OML18 Resources Limited a five-day ultimatum to remit $4.02 million to the Federation Account, citing unpaid oil royalties and gas flare penalties. The directive was issued Wednesday during a Committee hearing probing $1.7 billion in outstanding liabilities reportedly owed by 45 oil companies, based on findings from the 2021 audit report and data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

According to NUPRC official Balarabe Haruna, OML18 Resources formerly known as Sahara Field Production Ltd owes over $20.2 million. The debt includes $17.37 million in crude oil royalties, $2.86 million in gas flare penalties, and an additional N173.7 million in gas sales revenue. Speaking at the hearing, Olutobi Pamilerin Dairo, Team Lead of the company’s Commercial Department, acknowledged the debt and confirmed the figures provided by the regulator. “I agree there are liabilities,” Dairo stated, affirming NUPRC’s data.

PAC Chairman, Hon. Bamidele Salam, stressed the urgency of recovering the funds. “The money owed to the Federation Account is significant and Nigeria needs the money. We take it that you have confirmed the NUPRC’s claims,” he said. The Committee ruled that 20% of the confirmed debt $4.02 million must be paid within five days. It also directed the company to reconcile its accounts with the asset operator and submit a detailed breakdown of the remaining liabilities within two weeks.