$16 Billion Pipeline Lease Deal Signed in Kuwait

Kuwait Oil Company (KOC), a subsidiary of Kuwait Petroleum Corporation (KPC), has signed a massive pipeline lease-and-leaseback agreement worth $16 billion with a consortium led by Blackstone, Brookfield, and KKR.

The deal covers KOC's 13 pipelines, which stretch approximately 320 km across the country. A newly established joint venture (JV) will lease the usage rights to these pipelines from KOC in exchange for a volume-based tariff.

The JV will be owned 51% by KOC and 49% equally shared between Blackstone, Brookfield, and KKR. KOC retains full ownership and operational control of the pipeline assets while Kuwait continues to determine production levels and refining throughput.

The transaction is expected to provide KOC with $7.85 billion in upfront proceeds upon financial close. This funding will support KPC's capital investment program, including increasing Kuwait's crude oil production capacity to 4 million barrels per day (mmbbl/d) by 2035.