Stakeholders have called on the Federal Government to begin a fresh competitive bidding process for the proposed sale of a $243 million stake in the Amukpe–Escravos Pipeline, warning that reviving an earlier failed transaction could undermine transparency and investor confidence.
The disputed stake represents Pan Ocean Oil Corporation’s 40 per cent interest in the pipeline, while NNPC Exploration & Production Limited owns the remaining 60 per cent. The pipeline, which connects Amukpe in Delta State to the Escravos export terminal in Warri, can transport about 160,000 barrels of crude oil per day and has served as a major evacuation route since it became operational in 2022.
The planned divestment is linked to a debt restructuring arrangement involving lenders and the Asset Management Corporation of Nigeria (AMCON), with proceeds from the sale expected to settle outstanding obligations.
However, controversy has surrounded the transaction after an earlier deal valued at about $243 million collapsed in October 2024 when the prospective buyer reportedly failed to meet payment and other commercial conditions.
Stakeholders have opposed attempts to revive the failed deal, noting that an independent valuation carried out in 2025 reportedly placed the value of the 40 per cent stake at between $544 million and $641 million, significantly higher than the earlier figure.
Managing Director of Policy Management Consult Services, Jide Olatuyi, said the government should conduct a transparent and competitive bidding process based on the asset’s current market value to strengthen confidence in Nigeria’s oil and gas sector.
He added that several stakeholders, including project lenders and AMCON, support a fresh valuation to ensure the country receives fair value for the asset.
Also commenting, Executive Director of the Development Specs Academy, Prof. Okey Ikechukwu, urged authorities to suspend all ongoing processes related to the sale until an independent valuation is completed.
He warned that disposing of a strategic national asset below its market value would weaken governance standards, discourage investors and deny the country maximum value.
Meanwhile, United States-based energy consultant Chukwuma Atuanya described the Amukpe–Escravos Pipeline as a key asset that has improved crude evacuation and export reliability since its commissioning, citing its strong operational performance and reduced exposure to security risks due to its underground design.
