Major private equity groups are increasingly directing capital toward the pipeline infrastructure of Middle Eastern national oil companies, encouraged by Saudi Arabia and the UAE opening their networks to foreign investors. With that foothold established, firms are now turning their attention to similar assets held by international oil majors, viewing these deals as a way to provide Big Oil with cash for reinvestment in upstream production.
As oil prices remain soft and public-market investors show hesitation despite shifting ESG sentiment, private equity financing is emerging as an appealing avenue for companies to monetize pipeline and storage assets. What began as a regional trend in the Gulf could soon broaden, as Western oil giants look for capital to maintain dividends, support buybacks at $60 oil, and continue funding new production. In recent months, investors have been nudging executives at ExxonMobil, BP, TotalEnergies, and Eni to consider selling stakes in their midstream networks as a fresh alternative to relying on equity markets. During a closed-door meeting ahead of ADIPEC, private equity teams met with these companies to outline how divesting additional infrastructure assets could bolster financial flexibility.
Source: Yahoo! Finance
