Kuwait Petroleum Corp. (KPC) has enlisted JPMorgan Chase & Co. to advise on a potential leasing deal involving part of its pipeline network, according to people familiar with the matter. The state-run oil giant is seeking to raise as much as $7 billion through the transaction, which would help finance its multibillion-dollar expansion program, Bloomberg reported.
Centerview Partners LLC is also advising KPC as an independent financial consultant, the people said. Both KPC and JPMorgan declined to comment on the ongoing deliberations.
Deal would follow regional trend of energy infrastructure leasing
The proposed structure would resemble transactions undertaken by other state-backed energy firms across the Gulf. Typically, international investors—often large infrastructure funds—acquire a minority stake in a pipeline subsidiary while securing leasing rights, while the national company retains majority ownership and operational control.
Any final decision on the plan would require approval from Kuwait’s government, the people added. Kuwait, the world’s fifth-largest oil producer within OPEC, has been taking steps to attract more foreign capital as part of its broader economic opening.
Growing global investor interest in Kuwait
The KPC initiative comes amid rising foreign interest in Kuwait. Bloomberg reported this week that Goldman Sachs Group Inc. and Carlyle Group Inc. are preparing to establish offices in the country, joining BlackRock Inc., which already has a presence in the Gulf state.
Funding KPC’s $55 billion investment drive
KPC’s $55 billion investment program, launched in April 2024, is aimed at raising the country’s oil production capacity to 4 million barrels per day by 2035. Chief Executive Officer Sheikh Nawaf Al-Sabah told Bloomberg News that the program will be financed through a combination of cash reserves, conventional loans, lease-and-leaseback arrangements, and retained earnings.
Following deals in Saudi Arabia and the UAE
The potential transaction would echo similar landmark deals elsewhere in the region. In recent years, Saudi Aramco and Abu Dhabi National Oil Co. (Adnoc) have both entered multi-billion-dollar leasing agreements with global infrastructure investors.
- In August, BlackRock’s Global Infrastructure Partners signed an $11 billion leaseback deal tied to Aramco’s Jafurah gas project.
- In 2019, Adnoc sold a 40% stake in its oil pipeline network to BlackRock and KKR, later partially repurchased by a local entity.
- Other transactions included Adnoc selling part of its gas pipeline unit to an investor group led by GIP, while another consortium led by BlackRock acquired a 49% stake in Aramco Gas Pipelines Co.
Earlier this week, KKR also announced a stake purchase in Adnoc’s gas pipelines subsidiary.
The KPC deal, if finalized, would represent one of Kuwait’s largest moves yet to leverage its energy infrastructure for investment capital, while aligning with a broader regional strategy of monetizing midstream assets to fund future production growth.
