(WO) — Kuwait Oil Company (KOC) has signed a $16 billion infrastructure partnership involving its domestic and export crude oil pipeline network, a transaction expected to generate $7.85 billion in proceeds to help fund upstream expansion and support Kuwait’s goal of increasing crude oil production capacity to 4 MMbpd by 2035.
The agreement establishes a new joint venture between KOC and a consortium comprising Blackstone, Brookfield and KKR. Under the 20.5-year lease-and-leaseback structure, KOC will retain a 51% stake in the venture, while the three investors will collectively own the remaining 49%.
Although the joint venture will hold the usage rights to KOC’s 13-pipeline network, spanning approximately 320 km, KOC will retain full ownership, operational control and responsibility for operating and maintaining the assets. The agreement also preserves Kuwait’s full authority over crude oil production and refinery throughput.
KPC said the transaction will provide approximately $7.85 billion in upfront proceeds that will be directed toward broader capital expenditure plans, including projects supporting its strategy to increase national crude oil production capacity to 4 MMbpd by 2035 under the company’s 2040 Strategy.
The investment represents the largest foreign direct investment in Kuwait’s history and marks the first time major international institutional investors have committed long-term capital to the country’s midstream energy infrastructure.
“Project Peregrine represents the largest foreign direct investment in Kuwait’s history and a defining milestone for our country’s economic development,” said Shaikh Nawaf Saud Al-Sabah, deputy chairman and CEO of Kuwait Petroleum Corporation. “This transaction sends a powerful signal that Kuwait continues to rise as an attractive destination for global capital, even amid a challenging regional environment.”
The consortium’s investment comes through a newly established Kuwaiti-incorporated joint venture that will collect a volume-based tariff while leasing the pipeline network back to KOC. The structure is designed to unlock capital for future energy investments without affecting Kuwait’s production flexibility or operational control over its upstream and refining systems.
KPC said the partnership supports Kuwait’s long-term strategy to diversify sources of capital while advancing investments across its upstream portfolio as it works toward expanding crude oil production capacity over the coming decade.
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