Contemplating pipeline rentals to bolster a $65 billion financial expansion plan by KPC
Kuwait Petroleum Corporation (KPC), the national oil company of Kuwait, is considering a pipeline leasing deal as part of a larger $65 billion investment plan, it has been reported.
The proposal, which is still in the talks stage, would see KPC lease part of its pipeline network to both local and foreign investors. This potential funding source was mentioned by Sheikh Nawaf Al-Saud, the CEO of KPC, who has expressed openness to a pipeline monetization deal, similar to those done by ADNOC and Aramco in neighbouring Gulf states.
Sheikh Al-Saud has stated that he is looking for the cheapest sources of financing for future projects, which include production, refining, and petrochemicals. The investment plan, launched in April 2024, aims to raise between $5 billion and $7 billion through the pipeline leasing.
Centerview Partners LLC has been enlisted to advise on the pipeline leasing deal. If approved, the deal would be open to major international oil companies, regional sovereign wealth funds, and large global financial institutions.
The plan involves leasing 13 pipelines for a proposed period of 25 years. The investment program includes spending about $33 billion to raise oil production capacity to 4 million barrels per day by 2035.
It is important to note that no final decision has been reached on the pipeline leasing plan, and no specific funding amount for the deal has been disclosed yet. The plan is subject to government approval, and the talks are ongoing.
The Al Anba newspaper first reported the pipeline leasing deal, adding that it could resemble agreements carried out by neighbouring Gulf states. If successful, this deal could provide a significant boost to KPC's investment plans and contribute to the growth of Kuwait's oil industry.
