KUWAIT CITY: In a landmark move that marks the largest foreign direct investment in Kuwait’s history, state-owned Kuwait Petroleum Corporation (KPC) announced today that its subsidiary Kuwait Oil Company (KOC) has signed a $16.0 billion lease-and-lease-back agreement involving its entire domestic and export pipeline network.
The deal brings together a consortium of global investment heavyweights—Blackstone, Brookfield, and KKR—in a groundbreaking partnership that underscores Kuwait’s resilience and appeal as an investment destination, even amid recent regional tensions.
A New Chapter for Kuwait’s Energy Infrastructure
Under the agreement, a newly formed Kuwaiti-incorporated joint venture will lease usage rights to all 13 of KOC’s pipelines, spanning approximately 320 kilometers of Kuwait’s pipeline network. The joint venture will then grant back to KOC the exclusive use, operational, and maintenance rights for a 20.5-year period in exchange for a volume-based tariff.
KOC will maintain a 51% majority stake in the new joint venture, with the consortium—comprising Blackstone, Brookfield, and KKR—collectively holding the remaining 49% on equal terms. Crucially, KOC retains full ownership and operational control of the pipeline network, and the joint venture will impose no restrictions on Kuwait’s refining throughput or production volumes.
Financial Impact and Strategic Vision
The transaction is expected to generate upfront proceeds of $7.85 billion for KOC upon closing, providing substantial firepower for KPC’s capital expenditure plans. These include the corporation’s ambitious target of achieving 4 million barrels per day of crude oil production capacity by 2035.
The deal also supports Kuwait’s broader efforts to diversify sources of capital and deepen engagement with global investors—a commitment that Kuwait’s Prime Minister, His Highness Shaikh Ahmad Abdullah Al-Ahmad Al-Sabah, first announced at the Kuwait Oil & Gas Show in February 2026.
Leadership Weighs In
Shaikh Nawaf Saud Al-Sabah, Deputy Chairman and CEO of KPC, described the transaction as a defining milestone: “Project Peregrine represents the largest foreign direct investment in Kuwait’s history and a defining milestone for our country’s economic development. It delivers on the commitment announced by His Highness the Prime Minister to attract world-class international investors into Kuwait’s strategic infrastructure while preserving full national ownership and operational control.”
He added: “This transaction sends a powerful signal that Kuwait continues to rise as an attractive destination for global capital, even amid a challenging regional environment.”
Global Partners Express Confidence
Leaders of the consortium partners echoed the sentiment, highlighting their long-standing relationships with Kuwait.
Joe Bae and Scott Nuttall, Co-CEOs of KKR, stated: “Kuwait has established itself as one of the world’s leading energy producers through decades of disciplined investment and prudent stewardship. This investment reflects our confidence in Kuwait and our commitment to providing long-term capital in support of strategic infrastructure.”
Bruce Flatt, CEO of Brookfield Corporation, noted: “Kuwait is a long-standing and highly valued partner of Brookfield’s, and we have long admired the way it has built a globally leading energy industry. We are proud to support Kuwait as it continues to build out its vital energy infrastructure.”
Stephen Schwarzman, Chairman, CEO and Co-founder of Blackstone, emphasized the broader economic context: “Kuwait’s leadership, vision and resources have made it a compelling destination for international capital, built on its strength in the energy sector and remarkable efforts to diversify its economy. We are proud to support this critical infrastructure, helping meet rising global energy demand while deepening Blackstone’s nearly four-decade partnership with Kuwait.”
A Catalyst for Future Investment
Beyond its immediate financial impact, the joint venture is intended to serve as a catalyst for deeper participation by global investors in Kuwait’s national economy, aligning with KPC’s development plan and Kuwait’s long-term diversification agenda.
The transaction will be governed by Kuwaiti law and remains subject to customary closing conditions and regulatory approvals. Centerview Partners, HSBC, and J.P. Morgan acted as financial advisors to KPC.
About KPC: Kuwait Petroleum Corporation is the national oil company of the State of Kuwait, overseeing upstream, downstream, petrochemical, midstream, and international operations through six wholly owned subsidiaries.
About KOC: Kuwait Oil Company is responsible for all exploration, production, and transportation of crude oil on behalf of the State of Kuwait.
