Saudi Arabia and Kuwait Seek to Advance Energy Deals Despite War

Article content(Bloomberg) — Saudi Arabia and Kuwait are attempting to press on with planned multibillion-dollar energy deals despite a widening conflict that’s seen Iran target oil and gas infrastructure across the Middle East over the past three weeks.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentKuwait Petroleum Corp.’s attempts to lease part of its pipeline network has drawn interest from large private equity and infrastructure funds, according to people familiar with the matter. The suitors remain committed and the energy giant is carrying on with the plans for now, the people said, declining to identified as the information is private.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentSaudi Aramco too plans to launch a process to sell a stake in its oil export and storage terminals business in coming weeks, some of the people said. It had had picked Citigroup Inc. to help arrange a deal for the business that’s particularly significant now with the kingdom racing to reroute shipments to the Red Sea as the Strait of Hormuz remains at a standstill.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentKuwait Petroleum, meanwhile, is working with Centerview Partners LLC to lease part of its pipeline network and hoped to raise as much as $7 billion to help fund an investment plan. Article contentTheir attempts to carry on with the plans indicate Gulf states are keen to portray a business-as-usual approach despite Iran’s attacks. Still, there have been concerns that the war could dampen the process, some of the people said. Article contentRepresentatives for Aramco and Kuwait Petroleum didn’t respond to requests for comment. Citigroup and Centerview declined to comment.Article contentDeals like the ones being considered by Aramco and KPC have become increasingly popular with Gulf governments looking to diversify their economies. Such transactions are typically structured to allow regional oil behemoths to tap into global institutional capital while still retaining control over key assets.Article contentArticle contentBut the regional war, now in its fourth week, has caused some uncertainty. Article contentPresident Donald Trump said on Monday that the US had held productive conversations regarding a total resolution of hostilities in the Middle East. However, Iran hasn’t had “direct or indirect communication with Trump,” the country’s semi-official Fars news agency reported, citing an anonymous Iranian source. Article contentTehran has hit energy assets across the region since the war started, including Saudi Arabia’s biggest oil refinery at Ras Tanura, and repeatedly targeted the kingdom’s Shaybah oil field, which has the capacity to produce 1 million barrels of crude a day.Article contentSaudi Arabia’s storage terminals have also been in focus as the near-closure of the Strait of Hormuz forces the kingdom to send more of its oil into tanks. Kuwait is facing similar concerns as storage fills up, forcing it to cut oil production to levels seen in the early 1990s after the Iraqi invasion.Article contentDespite the conflict, Gulf sovereign investors more broadly are pressing ahead with global dealmaking.

Abu Dhabi Investment Authority, one of the world’s largest sovereign wealth funds, was particularly active this month, while Qatar’s wealth fund and a Bahraini aluminum firm both announced large deals in the first week of the war.Article content—With assistance from Anthony Di Paola.Article contentTrending Subscriber only. Hey Canadians, want to build a pipeline? Your pension might just help you do it Subscriber only Investor Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance TC Energy could be open to return to B.C. LNG pipeline project as global gas crunch threatens Oil & Gas Canadian housing bears now have nine reasons backing them up Mortgages Oil dives as Trump says talks to end war in Iran are underway Oil & Gas Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Subscriber only. Hey Canadians, want to build a pipeline? Your pension might just help you do it Subscriber only Investor Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance TC Energy could be open to return to B.C. LNG pipeline project as global gas crunch threatens Oil & Gas Canadian housing bears now have nine reasons backing them up Mortgages Oil dives as Trump says talks to end war in Iran are underway Oil & Gas