Kuwait Secures Record $16 Billion Deal with Blackstone, Brookfield, and KKR

Kuwait Petroleum Corporation (KPC) has signed a massive $16 billion lease and leaseback agreement for its domestic crude oil export pipeline network, known as the Shaheen Project.

The partnership involves KPC's subsidiary, Kuwait Oil Company (KOC), which will grant exclusive rights to use 13 pipelines spanning approximately 320 kilometers across its domestic network to a consortium led by Blackstone, Brookfield, and KKR. The agreement provides for tariff payments linked to oil flow volumes over a period of 20.5 years.

KOC will retain full ownership and operational control of the pipeline network under the deal, with the partnership company holding a 51 percent majority stake and the remaining 49 percent shared equally among the consortium members.

The transaction is expected to generate upfront proceeds of $7.85 billion for KOC upon completion, supporting KPC's capital investment program and its strategic objective of increasing Kuwait's crude oil production capacity to 4 million barrels per day by 2035.