Kuwait’s state oil giant, Kuwait Petroleum Corporation, has begun early-stage talks with global asset managers and private equity firms over a potential $7 billion stake sale in its crude oil pipeline network, according to three sources familiar with the matter.
The discussions, which could formally launch as soon as the end of this month, involve investors including BlackRock, Brookfield Asset Management, EIG Partners and KKR, as well as China-backed funds and infrastructure specialists.
The proposed transaction is structured with roughly $1.5 billion in equity and the remainder financed through debt, with HSBC currently underwriting the debt portion while additional banks are being approached to join the financing.
KPC Deputy Chairman and CEO Sheikh Nawaf Saud Al-Sabah is leading a steering committee overseeing the process, which includes regular reviews as the company studies leasing and re-leasing its pipeline assets to unlock financing.
The 25-year concession would provide KPC with upfront cash in exchange for long-term tariff payments, mirroring recent infrastructure monetisation deals in the Gulf region.
Similar transactions have been executed by Saudi Aramco, Abu Dhabi National Oil Company and Bapco Energies to raise capital from pipeline networks.
The move comes as crude prices hover near $71 per barrel, pressuring projected returns, while geopolitical tensions in the Gulf add further uncertainty to investor appetite.
KPC said in late 2023 it plans to invest $410 billion through 2040 to raise production capacity to 4 million barrels per day, underscoring the need for diversified funding sources.
BlackRock, which recently struck a similar infrastructure deal linked to Saudi gas assets and plans to open an office in Kuwait, declined to comment, alongside other interested parties.
KPC and the Chinese funds approached did not respond to requests for comment.