Published On 9/6/2026
Kuwait is continuing its plans to offer a stake in its oil pipeline network, with a number of major international investment companies qualifying for the next stage of competition for the deal, which could generate about $7.5 billion, an indication of the continued interest of international investors in Gulf energy assets despite the war and the fluctuations in the oil markets.
According to informed sources reported by Bloomberg, the shortlist of companies eligible for the deal included major investment companies, including Global Infrastructure Partners, a subsidiary of BlackRock, and Brookfield Asset Management, along with Apollo Global Management, KKR, and AIG Global Energy Partners.
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Kuwait Petroleum Corporation (governmental) is working with J.P. Morgan Bank and Centerview Partners to arrange the details of the deal, which is based on leasing part of the pipeline network, with the Kuwaiti state retaining control over the strategic assets.
Diversify financing
The deal comes as part of a growing trend in Gulf countries to benefit from global capital through infrastructure deals, allowing for the provision of liquidity without giving up ownership of vital assets.
Kuwait had begun work on the project before the outbreak of war on Iran at the end of last February, as part of broader efforts to attract foreign investors and enhance the participation of the private sector and global financial institutions.
Although Kuwait was exposed during the past months to direct repercussions of the war, which included targeting oil facilities and the headquarters of the Kuwait Petroleum Corporation, in addition to the country being forced to reduce oil production as storage facilities became full as a result of the closure of the Strait of Hormuz, the authorities decided to move forward with the oil pipeline deal.
Kuwait Petroleum Corporation CEO Sheikh Nawaf Al-Sabah said in previous statements that the company re-evaluated the project after the outbreak of war, but decided to continue with it due to continued investor interest.
Data indicate that Kuwait’s oil production is still at the lowest levels since the early 1990s, but Kuwaiti officials confirmed the possibility of returning to previous production levels within months of the end of the war.
The Kuwait Petroleum Corporation said a few days ago that the country can restore approximately 70% of its normal oil production levels within a period ranging between 6 and 8 weeks after the reopening of the Strait of Hormuz, noting that the company’s refining capacity amounts to about 1.4 million barrels per day.
Limited return of exports
The deal comes at a time when Kuwait began recording the first signs of resuming part of its oil exports after more than two months of disruption resulting from the closure of the Strait of Hormuz.
Kpler Analytics data showed that crude oil stocks at Mina Al-Ahmadi Refinery declined by more than 7 million barrels between May 29 and June 4, after two giant oil tankers were loaded with shipments of Kuwaiti crude.
The company stated that the two tankers entered the docks of Al-Ahmadi Port between late May and early June, and disabled the automatic tracking systems for more than a week during loading operations, and also stopped their transmitters and receivers during their passage in the Gulf of Oman.
These are the first large oil shipments to leave Kuwait since the country declared a state of force majeure on exports of crude oil and refined products last April, following the disruption of navigation through the Strait of Hormuz due to the war.
The decline in stocks indicates the start of discharging part of the oil surplus that has accumulated over the past months as a result of restrictions imposed on exports, at a time when Kuwait seeks to gradually restore the flow of its supplies to global markets.
