$16 Billion Pipeline Deal Lands Kuwait Record-Breaking Foreign Investment

Kuwait's state-owned corporation, Kuwait Petroleum Corporation (KPC), has signed a landmark $16 billion lease-and-leaseback agreement with a consortium of international infrastructure investors led by Blackstone, Brookfield, and KKR. The deal covers the entire domestic and export crude oil pipeline network in Kuwait, spanning approximately 320 kilometers. Under the agreement, a new joint venture will be established to lease the rights to use these pipelines for 20.5 years, with payments based on the volume of crude oil transported.

The consortium, which collectively holds a 49% stake in the joint venture, will receive predictable long-term revenue tied to Kuwait's production output. Kuwait Oil Company (KOC) retains a 51% controlling stake and maintains full ownership, operational control, and maintenance responsibilities for the pipeline network under an exclusive operating agreement.

The transaction is expected to generate upfront proceeds of $7.85 billion for KOC upon closing, supporting KPC's capital expenditure plans, including its target of raising crude oil production capacity to 4 million barrels per day by 2035.