Blackstone, Brookfield, and KKR Invest $16 Billion in Kuwait's Oil Pipeline
Kuwait Petroleum Corporation (KPC) has secured a major investment from private equity giants Blackstone, Brookfield, and KKR. The three firms have acquired a 49% stake in a joint venture with KPC through a 20.5-year lease and leaseback deal worth $16 billion.
The agreement, known as Project Peregrine, marks the largest foreign direct investment in Kuwait's history. KPC will receive $7.85 billion in cash from the deal, which it will use to finance investments aimed at increasing crude oil production to 4 million barrels per day by 2035.
Kuwait Oil Company (KOC), a subsidiary of KPC, will retain full ownership and operational control of the assets, while the joint venture will acquire the rights to use the infrastructure for the agreed-upon period. The deal is seen as a milestone in Kuwait's economic development, with Sheikh Shaikh Nawaf Saud Al-Sabah describing it as 'a strong signal' that the country remains an attractive destination for global capital.
The agreement follows a trend of Gulf oil companies monetizing part of their energy infrastructure while retaining industrial control. Saudi Aramco has previously sold stakes in its pipeline assets to international investors, including a deal with BlackRock Real Assets and Hassana Investment Company in 2021.