Kuwait Petroleum Corporation (KPC) has announced that its wholly owned subsidiary, Kuwait Oil Company (KOC), has signed a $16 billion lease-and-lease-back agreement covering its entire domestic and export pipeline network with an international consortium led by Blackstone, Brookfield, and KKR.
As part of the deal, a newly established joint venture (JV) incorporated in Kuwait will lease the usage rights to KOC’s 13 pipelines, which span approximately 320 kilometres across the country. The JV will then grant KOC exclusive rights to operate, maintain, and use the pipeline network for 20.5 years in return for a volume-based tariff.
The joint venture will be owned 51% by KOC, while the remaining 49% will be equally shared between Blackstone, Brookfield, and KKR. Despite the agreement, KOC will retain full ownership and operational control of the pipeline infrastructure.
KPC confirmed that the transaction will not affect Kuwait’s refining capacity or crude production levels, with all strategic decisions remaining under the authority of the State of Kuwait.
Upon completion, the agreement is expected to generate $7.85 billion in upfront proceeds for KOC. The funds will support KPC’s capital investment programme, including its goal of increasing crude oil production capacity to 4 million barrels per day by 2035.
KPC Deputy Chairman and CEO Shaikh Nawaf Saud Al-Sabah described Project Peregrine as the largest foreign direct investment in Kuwait’s history, calling it a major milestone for the country’s economic development. He added that the deal reinforces Kuwait’s position as an attractive destination for international investors despite ongoing regional challenges.
The transaction remains subject to customary regulatory approvals and closing conditions under Kuwaiti law. Centerview Partners, HSBC, and J.P. Morgan served as financial advisors to KPC.
