Key facts
- Kuwait Petroleum Corporation (KPC) is seeking consortium bids for its oil pipeline network, estimated at $7 billion.
- KPC has asked potential investors to tap other investors for their bids.
- Major asset managers including BlackRock, Brookfield, EIG, and KKR are reportedly interested.
- Several of these firms have advanced to the next stage of the sales process.
- This move aligns with similar deals by Saudi Arabia and the UAE involving their pipeline infrastructure.
Kuwait's state oil company, Kuwait Petroleum Corporation (KPC), is encouraging potential bidders for its $7 billion oil pipeline network to form consortiums and involve other investors. Sources familiar with the process told Reuters that KPC is looking to raise funds by leasing and re-leasing its pipeline assets.
This initiative follows similar moves by regional peers Saudi Arabia and the United Arab Emirates, who have previously sold stakes in their pipeline infrastructure to international investors. Major asset management firms, including BlackRock, Brookfield Asset Management, EIG Partners, and KKR, have reportedly expressed interest and advanced to the next stage of the sales process. BlackRock's Global Infrastructure Partners (GIP) was involved in an $11 billion lease and leaseback deal with Saudi Aramco for its Jafurah gas facilities, while KKR acquired a stake in Abu Dhabi's ADNOC Gas Pipeline Assets.
The process is proceeding despite the ongoing geopolitical tensions in the Middle East, indicating KPC's commitment to completing the transaction.