Private equity groups are investing in Middle East national oil company infrastructure assets. Big Oil is considering selling stakes in pipeline and storage assets to private equity to reinvest in production. Deals have been made, such as Apollo’s $1 billion investment in BP Pipelines. Investors urge Big Oil to rethink capital strategy.

Private equity teams met with Exxon, BP, TotalEnergies, and Eni to discuss offloading more infrastructure assets. Private equity giants prefer investing in Big Oil over equity markets. Deals like Apollo’s investment in BP Pipelines show the trend. Shell and BP have also completed infrastructure asset sales.

Global investment firms like KKR have bought stakes in Middle East energy infrastructure assets. ADNOC and Aramco have struck multi-billion dollar deals with investors. Infrastructure deals have flourished in the Middle East. Kuwait Petroleum Corporation is looking to raise funds by leasing part of its pipeline network. The trend of infrastructure funds buying into energy infrastructure is expanding.

Private equity money offers a win-win for both international majors and infrastructure funds. International majors get capital outside of public markets, while infrastructure funds get long-term reliable returns. The trend of investing in energy infrastructure started in the Middle East and is now expanding to Big Oil.

Read more at Yahoo Finance: Private Equity Circles Big Oil’s Pipelines as Majors Hunt for Cash