Kuwait Petroleum Explores Pipeline Lease To Secure Billions - Arabian Post

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Kuwait Petroleum Corp is evaluating a plan to lease sections of its pipeline network as part of its drive to raise between $5 billion and $7 billion, to support a broader investment programme totalling $65 billion that spans upstream oil operations and petrochemicals. The deal under consideration would see 13 pipelines leased out on a 25-year basis.

The firm has appointed Centerview Partners LLC as an adviser on how to structure the leasing arrangement. Approval from Kuwait's government will be needed before proceeding. Discussions remain ongoing and no final decision has been reached.

This approach reflects wider trends in the Gulf region, where state-owned energy companies have been monetising government-owned infrastructure to fund major development, especially as global energy transition pressures grow.

Under the plan, leasing out 13 pipelines over 25 years could unlock long-term contracts with private sector or international firms, transferring operational risk while generating upfront or steady cash flows for KPC. The funds are earmarked to help finance expansion across its entire value chain-from extraction to processing and chemical production.

Stakeholders point out several potential challenges. Ensuring that foreign or private lessees meet regulatory, safety, maintenance, and environmental standards will be crucial. Also, the valuation of the pipelines, negotiation of lease terms, and alignment with Kuwait's strategic energy and climate goals will affect investor appeal.

There is also the question of market timing. Oil and petrochemical prices remain volatile globally, and investor confidence depends on stability in energy demand and regulatory regimes. Leasing a major portion of infrastructure could complicate future flexibility in operations or adjustment of capacity if market dynamics shift.

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