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By Tracy Moses
The House of Representatives Committee on Public Accounts (PAC) has issued a five-day ultimatum to OML18 Resources Limited, formerly known as Sahara Field Production Limited, to remit $4,020,000 to the Federation Account as part of its outstanding liabilities to the federal government.
The directive was issued on Wednesday during a hearing as the Committee intensified its ongoing probe into debts owed by oil and gas companies. The investigation, triggered by the 2021 report of the Office of the Auditor-General for the Federation and data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), covers 45 oil companies collectively indebted to the tune of $1.7 billion.
Appearing before the Committee, NUPRC representative Balarabe Haruna disclosed that OML18 Resources owes a total of $20,232,978.58. This includes $17,370,619.89 in unpaid crude oil royalties and $2,862,358.69 in gas flare penalties. Additionally, the company owes N173,707,943.05 in gas sales revenue, he said.
Responding to the figures, Mrs. Olutobi Pamilerin Dairo, Team Lead of the Commercial Department at OML18 Resources, did not dispute the claims. “I agree there are liabilities,” she said, adding that the NUPRC is the rightful custodian of the data.
Chairman of the Committee, Rep. Bamidele Salam (PDP, Osun), described the matter as one of national importance, stressing the government’s urgent need for revenue. “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.
This is not the first time the House has taken a tough stance against defaulting oil companies.
Recall that in May 2021, the PAC ordered several marginal field operators to pay over $10 million in backlog royalties, following revelations from the 2019 audit report. Similarly, in October 2022, the Committee summoned top executives of oil firms over $6 billion in unpaid dues, warning that continued evasion would attract legal consequences.
As an immediate measure, the Committee resolved that OML18 Resources must remit 20% of its total liability, amounting to $4.02 million, within five days. The PAC also directed the company to reconcile its records with the operator of the OML18 asset and report back within 14 days with a detailed breakdown of the remaining liabilities.