Oil Debt : $4m Payment Deadline Set For OML18 Resources

The House of Representatives’ Public Accounts Committee has ordered OML18 Resources Limited to pay $4 million in oil royalties and gas flare penalties within five days.

The directive was issued during a committee hearing as part of an ongoing investigation into outstanding debts owed by oil companies to the Federation Account.

The investigation, based on findings from the 2021 Audit Report and data from the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, involving 45 oil companies collectively owing $1.7billion in outstanding.

During the session the NUPRC representative Balarabe Haruna explained that OML18 Resources owes a total of $20.2 million, including $17.3 million in crude oil royalties and $2.8 million in gas flare penalties.

Responding to the allegations, Mrs Olutobi Pamilerin Dario, Team lead of OML18 Resources Commercial Department, acknowledged the debt, stating that the NUPRC is the custodian of the relevant figures and confirming the accuracy of the liability.

The committee chairman, Bamidele Salam emphasized the seriousness of the matter and resolved that 20% of the total amount, equivalent to $4.02 million, must be paid within five days.

PAC 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.

Oduyemi Odumade, Edited By Blessing Nyor