The failure of the pipeline deal puts Nigeria’s asset governance under the spotlight

The sale of a 40% stake in the Amukpe-Escravos pipeline has drawn renewed attention to Nigeria’s asset divestment processes after new independent valuations showed a significant gap between previous prices and current estimates.

Reports say valuations conducted in 2025 place the stake between $544 million and $641 million. That compares with the $243 million offering tied to a transaction that formally closed in October 2024.

Multiple industry sources said the divergence in valuation, coupled with the re-emergence of a September 2025 approval linked to the deal’s failure, prompted new internal reviews among stakeholders, including lenders involved in the asset.

The Amukpe-Escravos pipeline is a key crude oil evacuation route linking domestic production to export terminals. It has a nominal capacity of approximately 160,000 barrels per day and is regarded in industrial circles as a consistently performing infrastructure.

Records show the original transaction collapsed after the preferred bidder, Conpurex Limited, defaulted on payment obligations and tried to renegotiate the agreed terms.

The bidder had previously taken over from Continental Oil and Gas Limited in the process.

A technical committee overseeing the transaction, working alongside a syndicate of lenders including the Asset Management Corporation of Nigeria (AMCON) and Sterling Bank, subsequently terminated the sale.

Senior banking sources said any consideration of the previous valuation would not reflect the current market conditions of the asset.

“The problem is not the asset itself,” said a senior industry source familiar with the matter. “It’s about whether the process reflects current market realities and expectations.”

Two industry sources said discussions among interested parties now focus on the valuation parameters and procedural management of any potential future transactions, including whether previous approvals can hold without a full restart of the process.

The pipeline continues to operate normally and remains part of Nigeria’s crude oil export infrastructure.

Officials at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and members of the technical committee did not respond to requests for comment by press time.

Related