Kuwait pipeline sale is a toe in the water for foreign investors

Kuwait’s plan to sell a stake in its oil pipeline network this month echoes similar transactions in the GCC and beyond in recent years. 

Industry sources said the deal – likely to be a leasing of the pipelines followed by a leaseback – could be worth $7 billion. But the transaction is about far more than the money. Kuwait is signalling that it is becoming more open to foreign investment in its oil and gas industries, and that could allow for a big increase in oil production.

Kuwaiti laws have for decades discouraged foreign…