Kuwait Oil Company Signs $16B Pipeline Lease Deal with Blackstone, Brookfield, KKR

Kuwait Oil Company (KOC) has signed a $16 billion lease-and-lease-back agreement for its entire domestic and export pipeline network. The deal involves KOC leasing the usage rights to all 13 of its pipelines, totaling approximately 320 kilometers, to a joint venture (JV) formed by Blackstone, Brookfield, and KKR.

The JV will grant back to KOC the exclusive use, operational, and maintenance rights in the pipeline assets for a 20.5 year period in exchange for a volume-based tariff. KOC will retain a 51% majority stake in the JV, while Blackstone, Brookfield, and KKR collectively hold a 49% share.

The agreement is expected to generate upfront proceeds of $7.85 billion for KOC, supporting its capital expenditure plans, including reaching 4 million barrels per day of crude oil production capacity by 2035.