Kuwait Oil Company Lands $16 Billion Pipeline Deal with International Consortium

Kuwait Oil Company (KOC), the upstream subsidiary of Kuwait Petroleum Company (KPC), has signed a massive lease-and-lease-back agreement worth $16 billion with an international consortium. The deal, dubbed 'Project Peregrine,' involves KOC's entire domestic and export pipeline network, covering around 320 km.

The transaction will form a Kuwaiti-incorporated joint venture, which will lease the usage rights to KOC's pipelines for 20 years and six months in exchange for a volume-based tariff. The JV will be owned by KOC (51%) and the consortium comprising Blackstone, Brookfield, and KKR (49%). KOC will retain full ownership and operational control of the pipeline network.

The deal is significant as it supports Kuwait Petroleum Company's capital expenditure plans, including its target of 4 million barrels per day (bpd) of crude oil production capacity by 2035. It also reflects the quality of KPC's asset base and Kuwait's appeal as an investment destination, despite regional tensions.