Nigeria: Reps Panel Gives Oil Firm 5 Days to Pay $4m Royalties
The Public Accounts Committee (PAC) in the House of Representatives has directed OML18 Resources Limited, formerly Sahara Field Production Ltd, to remit $4.020 million to the Federation Account within five days.
Chairman of the committee, Rep. Bamidele Salam gave the directive late Wednesday evening, at the resumed investigation into outstanding debts owed the federal government by some oil and gas companies operating in Nigeria.
The investigation was based on findings contained in the 2021 Audit Report and data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), involving 45 oil companies that were collectively owing $1.7 billion in outstanding liabilities.
In his presentation, NUPRC representative Balarabe Haruna reported that OML18 Resources owes a total of $20,232,978.58, comprising $17,370,619.89 in crude oil royalties and $2,862,358.69 in gas flare penalties as well as N173,707,943.05 in gas sales revenue.
Responding, the Team Lead of OML18 Resources’ Commercial Department, Mrs. Olutobi Pamilerin Dairo acknowledged the various outstanding payments owed by the Company as stated by the NUPRC which is the custodian of the relevant figures of the liabilities.
She said, “I agree there are liabilities”.
In his remark, the Committee Chairman, Rep. Bamidele Salam said, “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 has resolved that $4.02 million, which is the 20% of the total amount owed by the company must be paid within 5 days.
It also instructed OML18 Resources to reconcile its accounts with the asset operator within 14 days and report back to the committee with a breakdown of the remaining liabilities.
Recall that the committee in a statement by the House spokesperson, Rep. Akin Rotimi Jr on Tuesday, announced the recovery of an additional ₦11.488 billion from some oil and gas companies as outstanding outstanding obligations to the federal government.
By Daily Trust.
