A consortium led by Blackstone, Brookfield and KKR will acquire a 49% stake in Kuwait Oil Company’s 320km pipeline network – making it the country’s largest-ever energy infrastructure partnership and foreign direct investment
Kuwait Oil Company (KOC) has signed a $16bn infrastructure agreement with a consortium comprising Blackstone, Brookfield and KKR to establish a joint venture covering the country’s domestic and export crude oil pipeline network.
Structured as a 20.5-year lease-and-leaseback transaction, the deal covers all 13 of KOC’s crude oil pipelines, spanning about 320 kilometres.
Known as Project Peregrine, the transaction is set to become Kuwait’s largest energy infrastructure partnership and the largest foreign direct investment in the country’s history.
Under the agreement, KOC will retain a 51% ownership stake in the newly formed joint venture, while Blackstone, Brookfield and KKR will collectively own the remaining 49%, with each investor holding an equal share. KOC will maintain full ownership, operation and maintenance of the pipeline system.
The joint venture will lease the pipeline usage rights from KOC and grant the company exclusive rights to operate the network in exchange for a volume-based tariff. The agreement does not affect Kuwait’s authority over crude production or refinery throughput.
The transaction is expected to generate $7.85bn in upfront proceeds for KOC, supporting Kuwait Petroleum Corporation’s capital investment programme, including its goal of increasing crude oil production capacity to 4 million barrels a day by 2035.
KPC deputy chairman and CEO Shaikh Nawaf Saud Al-Sabah said the agreement marks a milestone for Kuwait’s energy sector while preserving state control of critical infrastructure.
“Project Peregrine represents the largest foreign direct investment in Kuwait’s history while preserving full national ownership and operational control,” Al-Sabah said.
The agreement also marks the first time major global institutional investors have committed long-term capital to Kuwait’s midstream infrastructure.
Representatives of Blackstone, Brookfield and KKR said the investment reflects confidence in Kuwait’s energy sector and long-term infrastructure strategy.
The transaction remains subject to customary regulatory approvals and closing conditions.
