Kuwait Petroleum Corporation (KPC) has requested that certain global investment funds bidding for a $7 billion stake in its oil pipeline network form consortiums by bringing in additional investors, according to three sources familiar with the matter. This approach aims to allow smaller investors with existing ties to KPC to participate in the deal.

The transaction is part of a broader initiative among Gulf state oil companies and sovereign wealth funds to attract foreign capital by monetizing infrastructure assets. These efforts support a strategic shift to diversify economies away from oil revenues and finance domestic development plans.

Among the bidders, Blackstone has emerged as a notable participant in the KPC pipeline stake sale. This marks the firm's first involvement in the recent wave of Gulf national oil company infrastructure deals, which have also drawn interest from firms such as BlackRock, Global Infrastructure Partners (GIP), KKR, Brookfield, EIG Global Energy Partners, and Apollo.

Regional peers have pursued similar asset strategies in previous years. Saudi Aramco, for example, finalized an $11 billion lease and leaseback agreement for its Jafurah gas processing facilities last October with a consortium led by GIP. Other global investors, including BlackRock’s GIP, Brookfield, EIG, KKR, and Apollo, have advanced to later stages in KPC’s sales process, sources said. Representatives from KPC and the various investment firms declined to comment.

The pipeline sale process has seen some attrition, with Macquarie exiting the bidding earlier. Meanwhile, a financing package estimated at approximately $6 billion is reportedly being arranged to support the eventual winner of the tender.

KPC initiated the pipeline stake sale during the early stages of the recent US-Israel conflict involving Iran, signaling Kuwait’s determination to proceed with its fundraising plans despite the tense geopolitical environment.