Kuwait Petroleum Corporation (KPC) announced Saturday that it has finalized a $16 billion agreement with a group of major U.S. investment firms — Blackstone, Brookfield, and KKR — centered on the country’s crude oil pipeline infrastructure.
The state-owned Gulf energy company described the transaction as the single largest foreign direct investment ever made in Kuwait.
The arrangement, officially called Project Peregrine, involves KPC’s subsidiary Kuwait Oil Company forming a joint venture with the three American investors under a lease and leaseback structure. The agreement runs for 20.5 years and includes a pricing model tied to pipeline usage volume, according to a statement from KPC.
The deal reflects a wider trend among Gulf state oil producers and sovereign investment entities seeking to unlock capital from infrastructure holdings while drawing in foreign investment to help finance large-scale domestic development projects.
Under the terms of the agreement, Blackstone, Brookfield, and KKR will together hold a 49% share in the newly formed joint venture. Kuwait Oil Company will keep a 51% controlling stake, along with full ownership and day-to-day operational authority over the pipeline network. That network consists of 13 pipelines stretching approximately 320 kilometres — roughly 199 miles — in total.
At the time the deal closes, it is expected to deliver $7.85 billion in immediate upfront proceeds.
