Kuwait Signs $16 Billion Pipeline Deal with Global Funds

Kuwait's state-owned oil company, Kuwait Petroleum Corporation (KPC), has signed a $16 billion deal to lease and lease back its crude oil pipeline network with a consortium of global funds. The deal, called Project Peregrine, involves Blackstone, Brookfield, and KKR collectively holding a 49% stake in the joint venture. In contrast, Kuwait Oil Company (KOC), a unit of KPC, will retain a 51% stake as well as full ownership and operational control of the network.

The pipeline network transports crude oil and refined products across Kuwait, linking the country's oilfields to export terminals on the Arabian Gulf. Under the deal, the global funds will receive $7.85 billion in upfront proceeds at closing. KPC's Deputy Chairman and CEO, Shaikh Nawaf Saud Al-Sabah, said that the transaction sends a 'powerful signal' about Kuwait's attractiveness as an investment destination.

The deal follows similar infrastructure fundraisings by other Gulf state oil companies, such as Saudi Arabia's Aramco and Abu Dhabi National Oil Company. The transaction is expected to support KPC's capital expenditure plans.