National oil company Kuwait Petroleum Corporation (KPC) has held early stage talks with a large group of potential investors over a $7 billion stake sale in its crude oil pipelines…
National oil company Kuwait Petroleum Corporation (KPC) has held early stage talks with a large group of potential investors over a $7 billion stake sale in its crude oil pipelines, three sources familiar with the matter said, following similar moves by Gulf peers Saudi Arabia and the United Arab Emirates.
BlackRock, Brookfield Asset Management, EIG Partners and buyout group KKR are among those that have shown interest, the sources said. Also showing interest are Chinese state enterprises China Silk Road Fund and China Merchants Capital, along with I Squared Capital and Macquarie Infrastructure Partners, the sources said.
The transaction is structured with around $1.5 billion in equity and the remainder financed through debt, the three sources said.
Sheikh Nawaf Saud Al-Sabah, KPC's deputy chairman and chief executive, is leading a steering committee overseeing the process, which sources described as being managed with close, hands-on oversight, with the committee convening every few weeks to monitor progress.
"We are studying the possibility of leasing and re-leasing (oil) pipelines in the country," Al-Sabah told reporters in September. "The pipelines are assets owned by KPC and do not generate direct financial returns. If there is an opportunity to secure additional financing through these assets... then
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