Kuwait Petroleum Corporation signs a $16 billion deal with Blackstone, Brookfield Asset Management, and KKR to lease its crude oil pipeline network.
Kuwait Petroleum Corporation (KPC) has secured a $16 billion infrastructure partnership with Blackstone, Brookfield Asset Management, and KKR to lease and lease back its crude oil pipeline network. The agreement, known as Project Peregrine, represents the largest foreign direct investment in Kuwait's history. Under the deal, the three global firms will collectively hold a 49% stake in a joint venture, while KPC's unit, Kuwait Oil Company (KOC), will retain a 51% stake and full operational control of the 13 pipelines for 20.5 years. The transaction is expected to generate $7.85 billion in upfront proceeds to support KPC's capital expenditure plans. Shaikh Nawaf Saud Al-Sabah, Deputy Chairman and CEO of KPC, stated that the deal signals Kuwait's growing appeal as a destination for global capital despite a challenging regional environment. The move follows a trend of Gulf oil companies seeking to raise funds from infrastructure assets while maintaining control of strategic assets. The deal was finalized even as Kuwait faces frequent infrastructure attacks from Iran.