Kuwait Petroleum Corporation (KPC) has secured a US$16 billion (AU$24.4 billion) lease-and-leaseback agreement covering its domestic and export crude oil pipeline network, marking the largest foreign direct investment in Kuwait’s history.
Under the deal, known as Project Peregrine, KPC subsidiary Kuwait Oil Company (KOC) will form a new joint venture with an international consortium comprising private equity and infrastructure giants Blackstone, Brookfield, and KKR.
The consortium will hold a collective 49 per cent minority stake, split equally among the three institutional investors, while KOC retains a 51 per cent majority interest along with full operational control and asset ownership.
The 20.5-year agreement grants the joint venture usage rights across 13 pipelines spanning approximately 320 kilometres, while KOC retains exclusive operational and maintenance rights in exchange for a volume-based tariff.
The structure preserves the State of Kuwait’s full control over its crude production and refining volumes without imposing operational restrictions.
The transaction is expected to unlock US$7.85 billion in immediate upfront proceeds for KOC upon closing. The capital will directly support KPC’s long-term capital expenditure program, including its 2040 strategy to expand crude oil production capacity to four million barrels per day by 2035.
KPC CEO Shaikh Nawaf Saud Al-Sabah said: “Project Peregrine represents the largest foreign direct investment in Kuwait’s history and a defining milestone for our country’s economic development.
“It delivers on the commitment… to attract world-class international investors into Kuwait’s strategic infrastructure while preserving full national ownership and operational control.
“This transaction sends a powerful signal that Kuwait continues to rise as an attractive destination for global capital, even amid a challenging regional environment.”
Stephen Schwarzman, CEO of Blackstone, said: “Kuwait’s leadership, vision and resources have made it a compelling destination for international capital, built on its strength in the energy sector and remarkable efforts to diversify its economy.”
The partnership follows similar energy infrastructure monetisation strategies across the Arabian Gulf, reinforcing international investor appetite for long-dated, tariff-backed infrastructure assets in the region.
