(Bloomberg) – Kuwait Petroleum Corp. (KPC) is weighing a multibillion-dollar pipeline lease deal that could raise as much as $7 billion to support its ambitious upstream oil investment program. The state-backed company, OPEC’s fifth-largest producer, is considering leasing 13 pipelines for up to 25 years, according to people familiar with the matter. Centerview Partners LLC is advising on the potential transaction.
The deal would mirror recent monetization strategies by regional peers Saudi Aramco and Abu Dhabi National Oil Co. (ADNOC), which have leased key midstream assets to global investors to free up capital for upstream growth. KPC plans to invest $65 billion across its portfolio, with about $33 billion earmarked for boosting oil production capacity toward its long-term goal of 4 million barrels per day by 2035.
CEO Sheikh Nawaf Al-Sabah has signaled flexibility in funding strategies, pointing to pipeline monetization as a competitive option. “If it comes from a pipeline deal, which would be open to both domestic and foreign investors, I’ll pursue that,” he said in an earlier interview.
The company’s upstream investment push comes amid growing demand for Gulf crude and heightened competition for capital in the global energy transition. Any final decision will require government approval, but a pipeline deal would underscore Kuwait’s commitment to sustaining and expanding upstream output in line with its OPEC role.
The deliberations follow recent major regional infrastructure transactions, including BlackRock’s $11 billion lease-and-leaseback deal with Aramco on the Jafurah gas project, as well as prior pipeline divestments by ADNOC. By pursuing similar partnerships, KPC is positioning itself to unlock capital while accelerating upstream drilling and production projects critical to its long-term energy strategy.
