Stakeholders Demand New Bidding for $243M Pipeline Stake

Stakeholders are urging the Nigerian government to initiate a new competitive bidding process for the sale of a 40% interest in the Amukpe-Escravos pipeline, valued at $243 million. This comes after a previous transaction was terminated due to the buyer's failure to meet payment obligations.

The pipeline, which runs through Delta State and has a transport capacity of 160,000 barrels per day, has been operational since 2022. Concerns have been raised regarding the asset's valuation, with previous assessments indicating a value between $544 million and $641 million, significantly higher than the initial $243 million.

Jide Olatuyi, Managing Director of Policy Management Consult Services, emphasized the need for a transparent process to restore investor confidence in Nigeria's oil and gas sector. Okei Ikechukwu, Executive Director of Development Spec Academy, warned against proceeding with the sale under outdated valuation benchmarks, arguing it could undermine public trust and the integrity of the regulatory process.