Discussing the possibility of leasing 13 pipelines to support a $65 billion investment endeavor, KPC is considering this move.
Kuwait Petroleum Corporation (KPC) is exploring a pipeline monetization deal to finance a massive $65 billion investment plan, according to reports by Al Anba newspaper. The plan, which remains subject to government approval, aims to raise between $5 billion and $7 billion through this pipeline leasing.
Sheikh Nawaf Al-Saud, the CEO of KPC, has expressed openness to the deal if it provides the cheapest financing. The investment program launched by KPC in April 2024 is part of this larger plan, spanning production, refining, and petrochemicals.
The pipeline deal is open to both local and foreign investors, similar to recent deals by ADNOC and Aramco. Potential investors may include regional sovereign wealth funds, international infrastructure investment firms, and major global oil and gas private equity firms.
The proposed deal would involve leasing 13 pipelines for a 25-year period. Talks regarding the deal are still ongoing, and no final decision has been reached. Sheikh Nawaf Al-Saud has enlisted Centerview Partners LLC to advise on the pipeline monetization deal.
The investment program includes spending about $33 billion to raise oil production capacity to 4 million barrels per day by 2035. The talks regarding the deal are reminiscent of agreements carried out by neighbouring Gulf states.
Sheikh Nawaf Al-Saud previously stated that KPC is considering multiple funding sources for future projects. If the pipeline monetization deal provides the cheapest financing, he is open to it. The deal, if approved, could resemble agreements carried out by neighbouring Gulf states.
Read also:
- Deepwater Horizon Oil Spill: BP Faces Record-Breaking Settlement - Dubbed 'Largest Environmental Fine Ever Imposed'
- Cars' Environmental Impact Explained
- Lawsuit of Phenomenal Magnitude: FIFA under threat due to Diarra's verdict, accused of player injustice
- Union IG Metall advocates for a swifter expansion of electrical mobility in the Eastern region.
