Lenders Obstruct Revived Acquisition of Amukpe-Escravos Pipeline Citing $350 Million Valuation Discrepancy

Lenders reject the revival of a terminated $243M pipeline bid, citing a new $600M valuation and calling for a transparent, competitive restart.

By: AXL Media

Published: Apr 20, 2026, 4:58 AM EDT

Source: Information for this report was sourced from The Nation

Challenges to Procedural Integrity in Strategic Divestment

Financial lenders have raised sharp objections to a renewed attempt to revive a defunct acquisition plan for a minority stake in the Amukpe-Escravos Pipeline (AEP). The transaction, which originally involved Continental Oil and Gas Limited and subsequently Conpurex Limited, was officially terminated in October 2024 following repeated breaches of contract and missed financial obligations. Lenders are now expressing alarm over the resurgence of an administrative approval linked to the failed deal, arguing that proceeding without a formal procedural reset threatens the transparency of the Nigerian energy sector.

Significant Valuation Gaps and Value Preservation

At the center of the dispute is a massive disparity between the original offer and current market realities. The initial deal was benchmarked at $243 million, a figure that had already faced resistance from creditors who viewed the price as unaligned with the asset's performance. By contrast, an independent valuation conducted in 2025 estimated the same stake to be worth nearly $600 million. Lenders contend that implementing a 2026 transaction based on an outdated 2024 benchmark fails to preserve national interest and significantly undervalues a critical piece of infrastructure.

Strategic Importance of the Infrastructure Asset

The Amukpe-Escravos Pipeline has become a cornerstone of Nigeria’s oil evacuation network, particularly as alternative corridors face persistent operational constraints. Boasting a throughput capacity of 160,000 barrels per day and maintaining a consistent uptime of over 95 percent, the AEP is categorized by analysts as a premium high-value asset. Financial stakeholders argue that any sale must reflect this high performance and strategic relevance, asserting that the asset's pricing should be dictated by competitive market conditions rather than administrative carryovers from a collapsed process.