Fresh concerns have emerged over the proposed sale of a 40 per cent stake in the Amukpe–Escravos Pipeline, with calls on the Federal Government to halt the process.
This comes amid growing concerns over the asset’s valuation and the possible impact on investor confidence in Nigeria’s oil and gas industry.
A public affairs analyst, Prof. Okey Ikechukwu, called for the immediate suspension of processes relating to the proposed sale of the 40 per cent stake in the Amukpe–Escravos Pipeline, warning that proceeding with the transaction under the current terms would amount to a giveaway of a strategic national asset.
The pipeline, which runs from Amukpe in Delta State to the Escravos export terminal in Warri, is jointly owned by Pan Ocean Oil Corporation, which holds 40 per cent, and NNPC Exploration & Production Limited, which controls the remaining 60 per cent. The asset, with a capacity of about 160,000 barrels per day, has become a strategic crude evacuation route in the western Niger Delta since it became operational in 2022.
It was learnt that the proposed sale of Pan Ocean’s 40 per cent stake is tied to a debt-restructuring and recovery arrangement involving lenders and the asset managers, under which proceeds from the disposal are expected to be used to settle outstanding obligations. The divestment process has, however, been mired in disputes over valuation and transaction history. It was gathered that an earlier transaction involving the proposed acquisition of the 40 per cent stake collapsed in October 2024 after the buyer allegedly failed to meet payment obligations and commercial conditions attached to the deal. However, concerns later emerged after indications that the transaction was being revisited using valuation benchmarks tied to the failed process.
Independent assessments reportedly conducted in 2025 subsequently valued the 40 per cent stake at between $544m and $641m, significantly higher than the $243m figure linked to the earlier failed transaction. The valuation gap has since fuelled criticism from industry observers who argue that disposing of the asset below current market value could short-change the country and weaken confidence in regulatory and commercial processes within the oil and gas sector.
Speaking during an interview on Arise TV, Ikechukwu, who is the Executive Director of the Development Specs Academy, questioned the pricing, procedure and transparency surrounding the planned transaction.
He said Nigeria was not in a desperate financial position that should warrant the disposal of a critical infrastructure asset at what he described as a “giveaway price”.
“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 stated.
The don argued that reviving or proceeding with the sale on the basis of disputed or outdated valuation benchmarks would undermine due process and public confidence, cautioning, “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.”
Describing the pipeline as a “performing national asset”, Ikechukwu noted that the facility reportedly maintains operational uptime levels of as high as 95 per cent.
“If you must sell a performing national asset, it must be sold at the right value,” he said.
The analyst compared the situation to a failed private land transaction revived at an outdated price, arguing that such a process would not be acceptable in a credible commercial environment.
He also warned that proceeding without an updated valuation process could erode investor confidence and raise concerns among lenders.
“But beyond all of that, where will investor confidence be? If you were a lender, how would you feel in this kind of environment? It might even be interpreted as sabotage,” he mentioned.
Ikechukwu maintained that the issue extended beyond pricing to institutional credibility and adherence to due process and consequently called for the immediate halt of all ongoing steps connected to the proposed 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.”
United States-based energy consultant, Chukwuma Atuanya, said the Amukpe–Escravos Pipeline has improved crude evacuation and strengthened Nigeria’s oil export reliability since it became operational in 2022.
Atuanya added that the system had demonstrated strong performance since coming on stream.
“Since commissioning, the underground system has demonstrated exceptional uptime and asset integrity, outperforming comparable overground pipelines in the region,” he stated.
He noted that the pipeline’s design offers additional advantages for crude delivery, particularly in a sensitive operating environment, saying, “Its burial depth and bypassing of traditional security hot spots also serve as a significant competitive advantage for product delivery to Escravos.”
Fresh concerns have emerged over the proposed sale of a 40 per cent stake in the Amukpe–Escravos Pipeline, with calls on the Federal Government to halt the process.
This comes amid growing concerns over the asset’s valuation and the possible impact on investor confidence in Nigeria’s oil and gas industry.
A public affairs analyst, Prof. Okey Ikechukwu, called for the immediate suspension of processes relating to the proposed sale of the 40 per cent stake in the Amukpe–Escravos Pipeline, warning that proceeding with the transaction under the current terms would amount to a giveaway of a strategic national asset.
The pipeline, which runs from Amukpe in Delta State to the Escravos export terminal in Warri, is jointly owned by Pan Ocean Oil Corporation, which holds 40 per cent, and NNPC Exploration & Production Limited, which controls the remaining 60 per cent. The asset, with a capacity of about 160,000 barrels per day, has become a strategic crude evacuation route in the western Niger Delta since it became operational in 2022.
It was learnt that the proposed sale of Pan Ocean’s 40 per cent stake is tied to a debt-restructuring and recovery arrangement involving lenders and the asset managers, under which proceeds from the disposal are expected to be used to settle outstanding obligations. The divestment process has, however, been mired in disputes over valuation and transaction history. It was gathered that an earlier transaction involving the proposed acquisition of the 40 per cent stake collapsed in October 2024 after the buyer allegedly failed to meet payment obligations and commercial conditions attached to the deal. However, concerns later emerged after indications that the transaction was being revisited using valuation benchmarks tied to the failed process.
Independent assessments reportedly conducted in 2025 subsequently valued the 40 per cent stake at between $544m and $641m, significantly higher than the $243m figure linked to the earlier failed transaction. The valuation gap has since fuelled criticism from industry observers who argue that disposing of the asset below current market value could short-change the country and weaken confidence in regulatory and commercial processes within the oil and gas sector.
Speaking during an interview on Arise TV, Ikechukwu, who is the Executive Director of the Development Specs Academy, questioned the pricing, procedure and transparency surrounding the planned transaction.
He said Nigeria was not in a desperate financial position that should warrant the disposal of a critical infrastructure asset at what he described as a “giveaway price”.
“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 stated.
The don argued that reviving or proceeding with the sale on the basis of disputed or outdated valuation benchmarks would undermine due process and public confidence, cautioning, “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.”
Describing the pipeline as a “performing national asset”, Ikechukwu noted that the facility reportedly maintains operational uptime levels of as high as 95 per cent.
“If you must sell a performing national asset, it must be sold at the right value,” he said.
The analyst compared the situation to a failed private land transaction revived at an outdated price, arguing that such a process would not be acceptable in a credible commercial environment.
He also warned that proceeding without an updated valuation process could erode investor confidence and raise concerns among lenders.
“But beyond all of that, where will investor confidence be? If you were a lender, how would you feel in this kind of environment? It might even be interpreted as sabotage,” he mentioned.
Ikechukwu maintained that the issue extended beyond pricing to institutional credibility and adherence to due process and consequently called for the immediate halt of all ongoing steps connected to the proposed 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.”
United States-based energy consultant, Chukwuma Atuanya, said the Amukpe–Escravos Pipeline has improved crude evacuation and strengthened Nigeria’s oil export reliability since it became operational in 2022.
Atuanya added that the system had demonstrated strong performance since coming on stream.
“Since commissioning, the underground system has demonstrated exceptional uptime and asset integrity, outperforming comparable overground pipelines in the region,” he stated.
He noted that the pipeline’s design offers additional advantages for crude delivery, particularly in a sensitive operating environment, saying, “Its burial depth and bypassing of traditional security hot spots also serve as a significant competitive advantage for product delivery to Escravos.”
