Six months in the past, Kuwait Petroleum Company (KPC) launched plans to monetize its pipeline infrastructure to fund future progress initiatives (MEES, 6 February). Since then, the Center East battle has radically reshaped the regional funding map. Regional governments are having to re-appraise long-term funding priorities, and Kuwait’s oil sector, which supplies round 90% of presidency revenues, has floor to a digital halt. In opposition to this backdrop, the conclusion of the $16bn lease-and-leaseback settlement this week may very well be seen as an necessary vote of confidence in KPC’s long-term prospects.
In a 25 July assertion, KPC mentioned its upstream subsidiary KOC would set up a $16bn three way partnership alongside Blackstone, Brookfield and KKR to lease the rights to Kuwait’s 13 crude oil pipelines from KOC for a 20.5-year interval. KOC will retain 51% within the Kuwaiti-incorporated JV, receiving $7.85bn upfront from its companions for the remaining 49%. The transaction follows comparable pipeline monetization agreements lately by Saudi Aramco and Abu Dhabi’s Adnoc. (CONTINUED – 983 WORDS)
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