Kuwait Signs Record $16 Billion Pipeline Deal with Global Private Equity Firms

Kuwait has made a significant investment in its energy sector by signing a $16 billion pipeline deal with international private equity giants Blackstone, KKR, and Brookfield.

The agreement was announced on July 25 by Kuwait Petroleum Corporation (KPC), which stated that its oil subsidiary had signed a lease-and-lease-back deal for the entire domestic and export pipeline network with the consortium led by New York-based Blackstone.

The investment is expected to boost Kuwait's output following Iranian attacks and the closure of the Strait of Hormuz. Under the 20-year deal, the consortium will take a 49 per cent share of Kuwait's 320 kilometer pipeline network, while the Kuwaiti firm retains 51 per cent.

Kuwait Petroleum Corporation's chief executive, Nawaf Saud Al-Sabah, said the joint venture represents 'the largest foreign direct investment in Kuwait's history and a defining milestone for our country's economic development.'

The deal is expected to generate upfront proceeds of $7.85 billion for Kuwait Oil Company (KOC) as it seeks to expand crude oil production capacity to four million barrels per day by 2035.