Key Crude Pipeline Sale Puts Spotlight On Nigeria’s Asset Valuation Process

The termination of a sale of a 40 per cent stake in the Amukpe–Escravos Pipeline has drawn renewed attention to Nigeria’s asset-disposal processes, after fresh independent valuations showed a significant gap between earlier pricing and current estimates.

Reports said that assessments conducted in 2025 placed the stake at between $544 million and $641 million. That compares with the $243 million offer linked to a transaction that was formally terminated in October 2024.

Multiple industry sources said the divergence in valuation, alongside the resurfacing of a September 2025 approval linked to the failed deal, has prompted fresh internal reviews among stakeholders, including lenders involved in the asset.

The Amukpe–Escravos Pipeline is a key crude evacuation route linking inland production to export terminals. It has a nameplate capacity of about 160,000 barrels per day and is regarded within industry circles as a consistently performing piece of infrastructure.

Records showed the original transaction collapsed after the preferred bidder, Conpurex Limited, failed to meet payment obligations and sought to renegotiate the agreed terms.

The bidder had earlier taken over from Continental Oil and Gas Limited.

A Technical Committee overseeing the transaction, working alongside a lender syndicate that includes the Asset Management Corporation of Nigeria (AMCON) and Sterling Bank, subsequently terminated the sale.

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

“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.”

Two industry sources said discussions among stakeholders are now focused on valuation benchmarks and the procedural handling of any potential future transaction, including whether prior approvals can stand without a full restart of the process.

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

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