Calls are growing for the Federal Government to abandon efforts to revive a previously failed transaction involving the proposed sale of a 40 per cent stake in the Amukpe–Escravos Pipeline, with industry stakeholders insisting that a fresh competitive bidding process and an updated valuation are necessary to protect national interests and preserve investor confidence.
The pipeline, which stretches from Amukpe in Delta State to the Escravos export terminal in Warri, is regarded as one of Nigeria's most strategic crude evacuation assets. It is jointly owned by Pan Ocean Oil Corporation, which holds a 40 per cent interest, and NNPC Exploration & Production Limited (NEPL), which owns the remaining 60 per cent.
Since commencing operations in 2022, the pipeline has become a critical export route for crude oil from the western Niger Delta, boasting a transportation capacity of approximately 160,000 barrels per day and an operational uptime reportedly exceeding 95 per cent.
Sale Linked to Debt Recovery
The planned divestment of Pan Ocean's 40 per cent stake forms part of a debt restructuring arrangement involving project lenders and the Asset Management Corporation of Nigeria (AMCON). Proceeds from the sale are expected to be used to offset outstanding financial obligations.
However, the proposed transaction has become the subject of controversy following disagreements over the asset's valuation and concerns surrounding an earlier failed acquisition.
Industry sources disclosed that a previous agreement to sell the stake for approximately $243 million collapsed in October 2024 after the prospective buyer allegedly failed to meet payment obligations and other commercial conditions.
Concerns later emerged after indications that authorities were considering reviving the terminated deal using the same valuation framework despite significant changes in the asset's market value.
According to reports, an independent valuation conducted in 2025 placed the value of the 40 per cent stake at between $544 million and $641 million, more than double the earlier transaction value.
The sharp valuation gap has intensified concerns that disposing of the asset at the earlier price could result in significant financial losses and undermine confidence in Nigeria's regulatory and commercial processes.
'A Fresh Bid Is the Right Approach'
Speaking during a recent television interview, the Managing Director of Policy Management Consult Services, Jide Olatuyi, said stakeholders were united in their call for a transparent and competitive sale process rather than resurrecting a transaction that had already failed.
"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 rejected suggestions that opposition to the proposed sale was driven by commercial rivalry.
"I don't think it is about sentiment at all. It is about governance in the oil and gas sector," he stated.
According to Olatuyi, Nigeria's challenge extends beyond attracting investors to ensuring confidence in the country's regulatory integrity and business environment.
He noted that key stakeholders—including Sterling Bank, AMCON and other project lenders—have advocated a transparent process based on current market realities and updated asset valuations.
"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 warned.
'Don't Sell a National Asset at a Giveaway Price'
Also weighing in on the issue, public affairs analyst and Executive Director of the Development Specs Academy, Prof. Okey Ikechukwu, urged the Federal Government to immediately suspend all activities relating to the proposed sale.
He argued that proceeding with the transaction using disputed or outdated valuations would amount to disposing of a valuable national asset below its true 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," Ikechukwu said.
Describing the Amukpe–Escravos Pipeline as a high-performing strategic asset, he stressed that any sale must reflect its actual market value.
"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.
He further added:
"If you must sell a performing national asset, it must be sold at the right value."
Ikechukwu also warned that pushing ahead without an updated valuation could discourage both 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 halt to the transaction, he stated:
"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."
Pipeline Seen as Strategic National Infrastructure
Adding an international perspective, United States-based energy consultant Chukwuma Atuanya described the Amukpe–Escravos Pipeline as one of Nigeria's most reliable crude transportation assets since its commissioning.
"Since inauguration, the underground system has demonstrated exceptional uptime and asset integrity, outperforming comparable overground pipelines in the region," Atuanya said.
He noted that the pipeline's underground design and routing away from traditional security flashpoints have enhanced operational reliability and reduced disruptions.
"Its burial depth and bypassing of traditional security hot spots also serve as a significant competitive advantage for product delivery to Escravos," he added.
As debate over the proposed divestment continues, stakeholders insist that any decision involving such a strategic national asset must be guided by transparency, competitive bidding and current market valuations to protect public value and strengthen investor confidence in Nigeria's oil and gas sector.