FG urged to review pipeline deal over valuation concerns

By Chukwuma Umeorah

The federal government has been urged to review the failed sale of a 40 per cent stake in the Amukpe–Escravos Pipeline following fresh valuation concerns raised by industry stakeholders and lenders involved in the transaction.

Industry sources said independent assessments conducted in 2025 valued the stake at between $544 million and $641 million, significantly above the $243 million offer linked to the transaction that was formally terminated in October 2024.

The gap between the earlier offer and current valuation estimates has triggered fresh scrutiny of the transaction process, with stakeholders questioning whether the pricing reflected prevailing market realities for the strategic oil infrastructure asset.

Sources familiar with the matter said discussions are now ongoing among members of the lender syndicate, including the Asset Management Corporation of Nigeria (AMCON) and Sterling Bank, over valuation benchmarks and the procedural handling of any future transaction involving the asset.

Some stakeholders are also said to be pushing for a reassessment of approvals previously tied to the failed deal, including whether the process would require a complete restart before any fresh transaction can proceed. “The issue is not the asset itself,” a senior industry source familiar with the matter said. “It is whether the process reflects current market realities and expectations.”

The Amukpe–Escravos Pipeline is regarded as a key crude evacuation route linking inland production to export terminals. The pipeline has a nameplate capacity of about 160,000 barrels per day and remains operational within Nigeria’s crude export infrastructure. Records show that the original transaction collapsed after the preferred bidder, Conpurex Limited, failed to meet payment obligations and later sought to renegotiate the agreed-upon terms.

Conpurex had earlier taken over from Continental Oil and Gas Limited during the transaction process. Following the breakdown of the deal, a technical committee overseeing the transaction, working alongside the lender syndicate, terminated the sale.

Industry sources also pointed to the resurfacing of a September 2025 approval linked to the failed transaction as an issue now attracting renewed attention among stakeholders reviewing the process.

Officials of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and members of the Technical Committee did not respond to requests for comment as of press time.