Kuwait Petroleum Corporation’s (KPC) fully owned subsidiary Kuwait Oil Company (KOC) has entered into a lease-and-lease-back agreement worth $16bn (Kd4.96bn) with a consortium of international investors led by Blackstone, Brookfield and KKR.
The agreement involves KOC’s entire domestic and export pipeline network.
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The transaction constitutes the largest foreign direct investment in Kuwait to date. Dubbed Project Peregrine, it is described as the country’s largest infrastructure partnership.
The agreement establishes a new Kuwaiti-incorporated joint venture (JV) that will lease usage rights for all 13 of KOC’s pipelines, which span around 320km.
These rights will then be leased back to KOC for a period of 20.5 years, with the company maintaining exclusive use, along with operational and maintenance control, on a volume-based tariff basis.
Following a competitive selection process, the consortium will acquire a collective 49% stake in the JV, divided equally among Blackstone, Brookfield and KKR.
Blackstone chairman, CEO and co-founder Stephen Schwarzman 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.
“We are proud to support this critical infrastructure, helping meet rising global energy demand while deepening Blackstone’s nearly four-decade partnership with Kuwait.”
KOC will hold the remaining 51% of the venture, retaining full ownership and operational control over the pipeline network.
The structure will not place any limits on Kuwait’s refining throughput or production volumes, which will continue to be determined by the State of Kuwait.
The JV is expected to generate $7.85bn in upfront proceeds for KOC when the transaction closes.
This amount is expected to support KPC’s capital expenditure plans, including the goal of reaching four million barrels of crude oil production capacity per day by 2035.
KPC deputy chairman and 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 announced by His Highness the Prime Minister Shaikh Ahmad Abdullah Al-Ahmad Al-Sabah at the Kuwait Oil & Gas Show (KOGS) in February 2026 to attract world-class international investors into Kuwait’s strategic infrastructure while preserving full national ownership and operational control.”
The agreement is also intended to support broader efforts to diversify Kuwait’s sources of capital and encourage deeper engagement with global investors.
It has been announced amid ongoing regional geopolitical tensions and represents one of the Arabian Gulf’s first major inward investments in recent years.
The agreement is subject to regulatory approvals and standard closing conditions, with Kuwaiti law governing the transaction.
Centerview Partners, HSBC and JP Morgan served as financial advisers to KPC.
