Stakeholders have called on the Federal Government to begin a new competitive bidding process for the proposed sale of a 40 per cent stake in the Amukpe–Escravos Pipeline, rejecting attempts to revive a previous deal that had already fallen through.
They also urged the government to commission a fresh valuation of the asset, arguing that its current market value should determine any future transaction and warning that the outcome could influence investor confidence in Nigeria’s oil and gas sector.
The Amukpe–Escravos Pipeline, which stretches from Amukpe in Delta State to the Escravos export terminal in Warri, is jointly owned by Pan Ocean Oil Corporation with a 40 per cent stake and NNPC Exploration & Production Limited, which holds the remaining 60 per cent.
Commissioned in 2022, the pipeline transports about 160,000 barrels of crude oil daily and has become a key evacuation route in the western Niger Delta, reportedly maintaining more than 95 per cent operational uptime.
The planned sale of Pan Ocean’s interest is linked to a debt restructuring arrangement involving lenders and the Asset Management Corporation of Nigeria, with proceeds expected to offset outstanding obligations.
However, the divestment has been surrounded by disagreements over valuation and the history of the transaction.
An earlier agreement to acquire the 40 per cent stake for about $243m reportedly collapsed in October 2024 after the buyer failed to meet payment obligations and other commercial conditions. Concerns later emerged over moves to revisit the failed deal using the same valuation benchmark.
A separate independent valuation carried out in 2025 reportedly placed the value of the stake between $544m and $641m, significantly above the earlier figure.
The wide disparity has sparked criticism from industry observers, who warned that disposing of the asset below its current value could deprive the country of revenue and weaken confidence in Nigeria’s investment climate.
Speaking during a television interview, the Managing Director of Policy Management Consult Services, Jide Olatuyi, said efforts to revive the failed transaction had raised questions about transparency and governance.
“What stakeholders are saying is that there is a need for a new competitive bidding process rather than attempting to revive a dead transaction,” Olatuyi said.
He maintained that the opposition was not based on rivalry but on the need to uphold proper governance standards.
“I don’t think it is about sentiment at all. It is about governance in the oil and gas sector,” he stated.
Olatuyi added that lenders, including Sterling Bank and the Asset Management Corporation of Nigeria, were among those supporting a transparent process based on current market valuations.
He warned that failure to ensure openness could discourage investment.
“If you are not committed to transparency, it becomes a problem for investors. If you cannot build trust and confidence in the sector, capital will go elsewhere,” he asserted.
Also commenting, public affairs analyst and Executive Director of the Development Specs Academy, Prof. Okey Ikechukwu, urged the government to halt the proposed sale, warning that proceeding under the current terms would amount to disposing of a valuable national asset below its worth.
“If that is allowed to happen, it means there is no governance. It means that people can exercise arbitrary discretion. It means that processes can be routinely violated,” he said.
He insisted the asset should only be sold after an updated valuation.
“We are not under any desperate need to sell it at a giveaway price, and that’s what appears to be happening here. If that is allowed to happen, then it means there is no governance,” he cautioned.
Describing the pipeline as a “performing national asset,” Ikechukwu added, “If you must sell a performing national asset, it must be sold at the right value.”
He also questioned the effect such a process could have on investors and lenders.
“But beyond all of that, where will investor confidence be? If you are a lender, how do you feel in this kind of environment? It might even be interpreted as sabotage,” he said.
Calling for an immediate suspension of the transaction, he said:
“All processes leading up to the presumed attempt to sell it now should be stopped. Quite frankly, terminated. An independent evaluation should take place so that we know the current value of what is on the table and ensure that the country does not lose money in the process.”
A United States-based energy consultant, Chukwuma Atuanya, said the pipeline has improved crude evacuation and strengthened the reliability of Nigeria’s oil exports since it came into operation.
“Since inauguration, the underground system has demonstrated exceptional uptime and asset integrity, outperforming comparable overground pipelines in the region,” he said.
He added, “Its burial depth and bypassing of traditional security hot spots also serve as a significant competitive advantage for product delivery to Escravos.”