Amukpe-Escravos Pipeline Sale Faces Major Challenges

The Amukpe-Escravos pipeline, a crucial 67-kilometer, 20-inch buried system with a capacity of 160,000 barrels per day, is facing significant issues regarding a proposed sale of a 40% stake. Initially valued at $243 million, the stake's worth has been reassessed to between $544 million and $641 million due to underperformance and market realities.

The deal, involving Conpurex Limited, collapsed in October 2024 after payment obligations were not met. Johnson Momodu argues that Nigeria is not strategically managing high-performing assets, risking undervaluation and undermining investor trust.

Professor Okei Ikechukwu, Executive Director at the Development Spec Academy, emphasizes the need for a transparent and competitive bidding process. The pipeline continues to operate reliably, contributing to national revenue despite challenges such as theft and vandalism.

The current situation calls for a reevaluation of the asset to ensure it reflects its true value and to restore investor confidence.