Oil & Gas

Kuwait Petroleum Corporation (KPC) has signed a landmark $16 billion lease-and-leaseback agreement for its crude oil pipeline network with a consortium of global investment firms Blackstone, Brookfield, and KKR.

The transaction, known as Project Peregrine, is the largest foreign direct investment in Kuwait’s history and will establish a joint venture between Kuwait Oil Company (KOC) and the three investors for a 20.5-year period. The agreement is expected to generate approximately $7.85 billion in upfront proceeds at financial close, providing KPC with significant funding to support its capital expenditure program.

Under the ownership structure, the investor consortium will collectively acquire a 49% stake in the joint venture, while KOC will retain the remaining 51% stake, ensuring majority ownership and full operational control of the pipeline network. The infrastructure comprises 13 crude oil pipelines extending approximately 320 kilometres (199 miles) across Kuwait, connecting the country’s oilfields with export terminals along the Arabian Gulf.

The lease-and-leaseback arrangement includes a volume-based tariff mechanism designed to support long-term operational and financial sustainability.

KPC described the transaction as a strong vote of confidence in Kuwait’s investment climate despite ongoing geopolitical tensions in the region. According to KPC Deputy Chairman and Chief Executive Officer Shaikh Nawaf Saud Al-Sabah, the deal demonstrates Kuwait’s ability to continue attracting global capital even amid a challenging regional security environment.

The agreement was initiated before the escalation of the Iran conflict, which has since seen continued attacks targeting infrastructure in Kuwait and neighboring countries.

The transaction reflects a broader trend among Gulf national oil companies to monetize strategic infrastructure assets while maintaining operational control. Similar pipeline financing arrangements have previously been undertaken by Saudi Aramco, Abu Dhabi National Oil Company (ADNOC), and Bahrain’s Bapco Energies.

By attracting international institutional investors while preserving majority ownership, KPC aims to strengthen its financial position and secure long-term investment to support Kuwait’s energy sector development.