Stakeholders seek fresh bidding for $243m pipeline stake

Stakeholders are pressing the Nigerian government to initiate a fresh competitive bidding process for the sale of a 40% interest in the Amukpe–Escravos Pipeline. They are actively opposing any attempts to revive a prior transaction that was terminated, emphasizing the need for a new valuation to determine the asset's true worth and safeguard investor confidence.

The Amukpe–Escravos Pipeline, a crucial crude evacuation route in the western Niger Delta operational since 2022, is jointly owned by Pan Ocean Oil Corporation (40%) and NNPC Exploration & Production Limited (60%). The pipeline has maintained an operational uptime exceeding 95% and has a transportation capacity of approximately 160,000 barrels per day.

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What stakeholders are saying is that there is a need for a new competitive bidding process rather than attempting to revive a dead transaction.

The proposed sale of Pan Ocean's stake is linked to a debt restructuring plan, with proceeds intended to settle outstanding obligations. However, the divestment process has become mired in disputes over valuation and the history of the transaction. An earlier deal, valued at approximately $243 million, collapsed in October 2024 when the buyer allegedly failed to meet payment and commercial conditions.

Concerns have surfaced that the transaction is being revisited using valuation benchmarks from the failed process. An independent assessment in 2025 reportedly valued the 40% stake between $544 million and $641 million, significantly higher than the initial $243 million. This valuation gap has drawn criticism from industry observers who fear that selling the asset below its current market value could disadvantage the country and undermine confidence in Nigeria's oil and gas sector governance.

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I don’t think it is about sentiment at all. It is about governance in the oil and gas sector.