Stakeholders have urged the Federal Government to initiate a new competitive bidding process for the planned sale of a 40 per cent interest in the Amukpe–Escravos Pipeline, while opposing efforts to resurrect an earlier transaction that had already been terminated.

Amid growing concerns, stakeholders are urging a fresh valuation to establish the true worth of the disputed asset, citing the possible impact of the outcome on investor confidence in Nigeria’s oil and gas industry.

The Amukpe–Escravos Pipeline, which runs from Amukpe in Delta State to the Escravos export terminal in Warri, is jointly owned by Pan Ocean Oil Corporation, which holds 40 per cent, and NNPC Exploration & Production Limited, which controls the remaining 60 per cent.

The asset, with a transportation capacity of about 160,000 barrels per day, has become a strategic crude evacuation route in the western Niger Delta since it became operational in 2022 and has reportedly maintained operational uptime above 95 per cent.

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It was learnt that the proposed sale of Pan Ocean’s 40 per cent stake is tied to a debt restructuring and recovery arrangement involving lenders and the Asset Management Corporation of Nigeria, under which proceeds from the disposal are expected to be used to settle outstanding obligations.

The divestment process has, however, been entangled in disputes over valuation and transaction history.

It was gathered that an earlier transaction involving the proposed acquisition of the 40 per cent stake, valued at about $243m, collapsed in October 2024 after the buyer allegedly failed to meet payment obligations and commercial conditions attached to the deal. Concerns later emerged after indications that the transaction was being revisited using valuation benchmarks linked to the failed process.

An independent assessment reportedly conducted in 2025 was said to have subsequently valued the 40 per cent stake at between $544m and $641m, instead of $243m.

The valuation gap has been fuelling criticism from industry observers, who argued that disposing of the asset below current market value could short-change the country and weaken confidence in regulatory and commercial processes within the oil and gas sector.

Speaking during a recent interview on national television, the Managing Director of Policy Management Consult Services, Jide Olatuyi, said renewed efforts to revive the failed transaction had raised broader concerns about governance, transparency and the credibility of Nigeria’s investment environment.

“What stakeholders are saying is that there is a need for a new competitive bidding process rather than attempting to revive a dead transaction,” Olatuyi said.

He dispelled thoughts that opposition to the proposed transaction was driven by sentiment or commercial rivalry, saying the issue was fundamentally about governance standards.

“I don’t think it is about sentiment at all. It is about governance in the oil and gas sector,” he stated.

According to him, Nigeria’s challenge is no longer limited to attracting investors but also ensuring that investors have confidence in the integrity of the country’s commercial and regulatory processes.

Olatuyi added that several stakeholders, including project lenders such as Sterling Bank and the Asset Management Corporation of Nigeria, had advocated a transparent process that reflects current market realities and updated asset valuations.

He urged the authorities to ensure that any future transaction involving the asset is conducted through an open, transparent and competitive process capable of inspiring investor confidence and safeguarding public value.

“If you are not committed to transparency, it becomes a problem for investors. If you cannot build trust and confidence in the sector, capital will go elsewhere,” he asserted.

Earlier, a public affairs analyst and Executive Director of the Development Specs Academy, Prof. Okey Ikechukwu, also called for the immediate suspension of processes relating to the proposed sale, warning that proceeding with the transaction under the current terms would amount to a giveaway of a strategic national asset.

“If that is allowed to happen, it means there is no governance. It means that people can exercise arbitrary discretion. It means that processes can be routinely violated,” he said.

The don argued that reviving the sale on the basis of disputed or outdated valuation benchmarks would undermine due process and public confidence.

“We are not under any desperate need to sell it at a giveaway price, and that’s what appears to be happening here. If that is allowed to happen, then it means there is no governance,” he cautioned.

Referring to the pipeline as a “performing national asset,” Ikechukwu argued that any sale of such an asset must reflect its true market value, stating, “If you must sell a performing national asset, it must be sold at the right value.”

He also warned that proceeding without an updated valuation process could erode investor confidence and raise concerns among lenders.

“But beyond all of that, where will investor confidence be? If you are a lender, how do you feel in this kind of environment? It might even be interpreted as sabotage,” he said.

Ikechukwu called for the immediate suspension of all ongoing processes connected to the proposed transaction.

“All processes leading up to the presumed attempt to sell it now should be stopped. Quite frankly, terminated. An independent evaluation should take place so that we know the current value of what is on the table and ensure that the country does not lose money in the process.”

A United States-based energy consultant, Chukwuma Atuanya, said the Amukpe–Escravos Pipeline had improved crude evacuation and strengthened Nigeria’s oil export reliability since it became operational in 2022.

“Since inauguration, the underground system has demonstrated exceptional uptime and asset integrity, outperforming comparable overground pipelines in the region,” he said.

He added, “Its burial depth and bypassing of traditional security hot spots also serve as a significant competitive advantage for product delivery to Escravos.”

Courtesy – The Punch

The monitoring of upstream operations in Nigeria is in for radical transformation because the Heirs Energies OML 17 Joint Venture has collaborated with Redtech to unveil its Integrated Operations Monitoring Centre (IOMC).

It was gathered that the IOMC is a next-generation digital operations hub designed to digitally monitor the way upstream assets are monitored, managed and optimised.

According to the company, the commissioning marks a significant milestone in the joint venture’s commitment to operational excellence, innovation and technology-driven performance by bringing together operational intelligence, production monitoring, security surveillance, hydrocarbon evacuation, facility performance and critical asset data into a single integrated environment.

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In a statement, the company stated that the monitoring centre, developed through a collaboration between Heirs Energies, operator of OML 17, and Redtech, the technology company within the Heirs Holdings Group, represents the convergence of energy expertise and digital innovation to enable faster decision-making, improved collaboration and greater operational visibility across OML 17.

Speaking at the unveiling, the Chief Executive Officer of Heirs Energies, Osa Igiehon, said the centre would provide real-time visibility of the company’s operations and improve efficiency.

“The future of upstream operations will be driven by data, technology and intelligent decision-making. The Integrated Operations Monitoring Centre provides us with a real-time operational view of our assets, enabling quicker decisions, improved collaboration and enhanced operational efficiency. It reinforces our commitment to deploying innovation to deliver safer, smarter and more resilient operations across OML 17,” the CEO said.

According to the company, the IOMC serves as the digital nerve centre of the joint venture by integrating operational data from multiple systems into a single platform that supports proactive decision-making, production optimisation, asset integrity and operational risk management.

It added that the centre also strengthens the security of OML 17’s remote assets through an intruder detection and surveillance system, enabling real-time monitoring, early threat detection and faster incident response across critical facilities and infrastructure.

The firm added that beyond real-time monitoring, the centre provides a foundation for future capabilities, including predictive analytics, remote operations, artificial intelligence-enabled decision support and advanced production optimisation.

The Managing Director and Chief Executive Officer of Redtech, Emmanuel Ojo, said the project demonstrates the value of technology in addressing operational challenges.

He said, “At Redtech, we believe technology should simplify operations, improve decision-making and create measurable business value. The IOMC demonstrates what is possible when digital innovation is applied to industrial operations. Working alongside Heirs Energies, we have delivered a platform that enables connected operations, intelligent monitoring and faster operational response. This is another example of how technology can unlock greater efficiency and performance across Africa’s energy sector.”

The statement noted that since assuming operatorship of OML 17 in 2021, Heirs Energies has transformed one of Nigeria’s largest onshore assets through its Brownfield Excellence strategy, increasing oil production to over 50,000 barrels of oil per day while expanding domestic gas supply to over 135 million standard cubic feet per day and improving operational reliability.

The company added that the IOMC represents the next phase of this transformation by embedding digital capability at the heart of field operations and reinforcing the joint venture’s commitment to safe, efficient and technology-enabled energy production.

Households across parts of the country are beginning to experience relief as retail prices of Liquefied Petroleum Gas, popularly known as cooking gas, decline following improved product supply and softer depot prices.

The latest market update from gas marketers showed that retail LPG prices have started easing in major cities after weeks of elevated prices, although the reductions have not been uniform because of varying transportation costs, distance from supply depots and retailer margins.

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Checks by marketers indicated that cooking gas is now selling for between N1,100 and N1,350 per kilogramme in Lagos, Ibadan and Abeokuta, while consumers in Benin City, Port Harcourt and Warri are paying between N1,150 and N1,400/kg.

In Onitsha and Enugu, retail prices range from N1,200 to N1,450/kg, while consumers in Abuja pay between N1,250 and N1,500/kg.

The National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Edu Inyang, told our correspondent that northern cities, including Kano and Kaduna, currently record prices of N1,300 to N1,550/kg, while consumers in Maiduguri and parts of the North-East still pay the highest prices, ranging from N1,350 to N1,650/kg, reflecting the additional logistics costs of transporting products to the region.

Overall, Inyang said the national retail price range now stands at approximately N1,100 to N1,650 per kilogramme, although some neighbourhood retailers continue to charge above the range where transportation and distribution costs remain elevated.

The improvement marks a reversal from the sharp increases witnessed from May, when supply tightness and rising depot prices pushed cooking gas costs significantly higher across several parts of the country.

According to the NALPGAM president, the latest decline follows improved product availability from both domestic production and imports, as well as lower depot prices. He also attributed the easing to increased competition among marketers and the disappearance of panic buying that had briefly tightened supplies.

“Following reports of improved LPG supply and softer depot prices in late June 2026, retail cooking gas prices have started easing in some markets, although the reduction has not been uniform across Nigeria. Transport costs, distance from depots, and retailer margins still create noticeable differences between cities.

“Overall, the national retail range is roughly N1,100 to N1,650 per kilogramme, with some neighbourhood retailers charging slightly above this range where logistics costs remain high. The recent easing reflects lower depot prices as supply improved, increased product availability from domestic sources and imports, reduced panic buying and hoarding after government market interventions, and more competition among marketers in major cities,” Inyang said.

The development is expected to provide some relief to households grappling with rising living costs, although industry players noted that prices may continue to differ from one location to another depending on local distribution expenses.

Based on the prevailing retail prices, a 5kg cylinder refill now costs between N5,500 and N8,250, while a 6kg refill ranges from N6,600 to N9,900. Inyang said consumers refilling a standard 12.5kg cylinder are expected to pay between N13,750 and N20,625, depending on location and retailer.

Despite the improvement, marketers cautioned that retail prices are yet to stabilise nationwide, noting that communities located farther from major LPG depots may continue to experience relatively higher prices because of transportation costs.

Industry operators expressed optimism that sustained product availability from local producers, alongside steady imports, would further moderate prices in the coming weeks, provided there were no major disruptions to supply or logistics.

Also, the National Chairman of the Liquefied Petroleum Gas Retailers Branch of the Nigeria Union of Petroleum and Natural Gas Workers, Ayobami Olarinoye, told our correspondent that normalcy was gradually returning to the sector.

However, Olarinoye, whose members sell gas in neighbourhood shops, said they currently sell to consumers at prices ranging from N1,600 to N1,800/kg. “The inflow and supply are gradually getting back to normal. There is more availability.

“The price is also coming down gradually. As of today (Monday), we buy from between N1,300 and N1,500 per kg from the marketers (plant operators), depending on the locations, while we sell between N1,600 and N1,800 per kg to consumers. This also depends on the location and associated logistics.”

The PUNCH earlier reported that as cooking gas prices rose by about 140 per cent in many locations across the country, marketers finalised plans to import the product on a large scale to improve affordability and availability.

Cooking gas prices rose from an average of N1,000 per kilogramme in January and February this year to as high as N2,400 between May and June. Consequently, the regulator began issuing licences for the importation of LPG. This followed the inability of local LPG producers to meet domestic demand, according to industry operators.

Meanwhile, the Minister of Petroleum Resources (Gas), Ekperikpe Ekpo, intervened, warning operators against hoarding and profiteering.