KPC Signs Historic $16 Billion Deal for Crude Oil Pipeline Network

Kuwait Petroleum Corporation (KPC) has signed a historic $16 billion lease-and-leaseback agreement for Kuwait Oil Company's domestic crude oil export pipeline network. This deal marks the largest foreign direct investment in Kuwait's history, generating $7.85 billion in upfront proceeds for KOC.

The agreement, named the Shaheen Project, establishes a new Kuwait-based partnership company to lease the rights to use 13 crude oil export pipelines spanning approximately 320 kilometers across the country. Under this deal, Kuwait Oil Company will retain 51% ownership and operational control in the joint venture, while the remaining 49% stake will be shared equally among the investment consortium.

KPC emphasized that the transaction will not affect Kuwait's sovereignty over its strategic energy assets. All production, refining, and operational decisions will remain under the control of the State of Kuwait. The proceeds from this deal are expected to help finance Kuwait's strategic energy projects, including its plan to raise crude oil production capacity to 4 million barrels per day by 2035.