Kuwait Signs $16 Billion Pipeline Upgrade Deal with Blackstone, Brookfield, KKR

Kuwait has signed a massive $16bn deal to upgrade its oil pipeline infrastructure, marking the country's largest-ever energy partnership and foreign direct investment. Under the agreement, a consortium led by Blackstone, Brookfield, and KKR will acquire a 49% stake in Kuwait Oil Company's 320km pipeline network.

The joint venture, known as Project Peregrine, is structured as a 20.5-year lease-and-leaseback transaction that covers all 13 of KOC's crude oil pipelines. The deal does not affect Kuwait's authority over crude production or refinery throughput.

Kuwait Oil Company will retain a 51% ownership stake in the joint venture, while Blackstone, Brookfield, and KKR will collectively own the remaining 49%. The agreement is expected to generate $7.85bn in upfront proceeds for KOC, supporting Kuwait Petroleum Corporation's capital investment programme.

KPC deputy chairman and CEO Shaikh Nawaf Saud Al-Sabah said the agreement marks a milestone for Kuwait's energy sector while preserving state control of critical infrastructure.