$16 Billion Deal Sees Blackstone, Brookfield, KKR Lease Kuwait Pipeline Network

Kuwait Petroleum Corporation (KPC) has signed a $16 billion deal to lease its crude oil pipeline network to a consortium of global funds Blackstone, Brookfield Asset Management, and KKR.

The partnership, known as Project Peregrine, will operate in a lease-and-leaseback structure for 20.5 years with a volume-based tariff.

KPC's unit Kuwait Oil Company (KOC) is establishing a joint venture with the three global investors, who collectively hold a 49% stake in the project.

KOC will retain a 51% stake and full ownership and operational control of the network, which comprises 13 pipelines spanning approximately 320 kilometers across Kuwait.

The deal is expected to generate $7.85 billion in upfront proceeds at closing, supporting KPC's capital expenditure plans.