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$30m Royalty: Reps Committee Summon Mgt, Board Of Sterling Oil

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The House of Representatives Committee investigating oil revenue leakages and the activities of the Department of Petroleum Resources (DPR) has summoned the managing directors and board members of Sterling Oil Exploration and Energy Production Company and its sister company, Sterling Global Oil Resources Limited, over unremitted loyalty of $30million to the federal government.
This is just as the committee demanded that ND Western Oil and Eroton Oil should within 48 hours present to the committee, their budgets for the year 2015, 2016 and 2017 as well as the summary of budget performance and the oil well dug in the respective years.
The committee alleged that one of the Sterling Global Oil Resources Limited, a sister company of Sterling Oil Exploration and Energy Production Company, has no record of royalty payment, thereby short-changing the government.
The committee hereby ordered its clerk to liaise with the Cooperate Affairs Commission (CAC) to unveil the board members, so as to avoid false representation.

Chairman of the committee, Hon Jarigbe Agom Jarigbe, while raising the observation said: “This committee only has record of payment from Sterling Oil Exploration and Energy Production Company while Sterling Global Oil Resources Limited has not been paying, there seems to be an under-hand deal, we want to get to the root of this matter, and determine if the revenue is being remitted to the consolidated revenue accounts.”
When the committee demanded records of royalty payment from the company, the company’s business development manager, Mr. Chukwuemeka Njoku and its legal consultant, Mrs. Rhona Dinude could not convince the committee with their responses.
The committee also demanded to know the managing directors of the two companies, Again, Njoku could not mention the names in specifics.
Meanwhile, the head of legal department of ND Wester, Mr. Omo omorodion had explained that the Nigerian government is owing ND western about $40bn for gas supplies at the last estimate.

He also stated that the Department of Petroleum Resources ( DPR) has accepted the companies proposal to settle its outstandingly royalty debt through direct crude from its take-off.




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