Kuwait Petroleum Considers $7B Pipeline Lease To Fund Oil Expansion

Kuwait Petroleum Corporation (KPC) is considering leasing 13 pipelines over 25 years to raise between $5 billion and $7 billion as part of its $65 billion investment program aimed at expanding upstream oil production and petrochemical operations. The company has appointed Centerview Partners as its adviser and is looking to replicate the asset monetization strategies recently employed by Saudi Aramco and Abu Dhabi National Oil Company to free up capital for growth. KPC's goal is to boost oil production capacity to four million barrels per day by 2035, and CEO Sheikh Nawaf Al-Sabah has expressed openness to pipeline monetization involving both domestic and international investors. The plan requires final approval from the Kuwaiti government, and discussions remain ongoing without a final decision. Challenges include ensuring regulatory compliance, safety, maintenance, and environmental standards by potential lessees, as well as managing valuation and lease terms in a volatile global oil market. This initiative underscores Kuwait's commitment to sustaining and expanding its oil output amid competitive pressures in the global energy transition.