- Kuwait Petroleum Corporation has signed a $16 billion lease and leaseback agreement covering its crude oil pipeline network with Blackstone, KKR, and Brookfield.
- The transaction, named Project Peregrine, is described as the largest foreign direct investment in Kuwait's history.
- Under the agreement, KPC subsidiary Kuwait Oil Company will establish a joint venture with the three U.S. investment groups for 20.5 years.
- Blackstone, KKR, and Brookfield will collectively own a 49% interest in the venture, leaving Kuwait Oil Company with a controlling 51% stake.
- The transaction is expected to generate $7.85 billion in upfront proceeds when it closes.
- Kuwait Oil Company will retain full ownership and operational control of the infrastructure, which comprises 13 pipelines extending about 320 kilometres.
- The leaseback structure allows KPC to unlock capital tied to established infrastructure without selling the strategic asset or transferring responsibility for its operations.
Kuwait Petroleum Corporation (KPC) has signed a historic $16 billion lease and leaseback agreement with a consortium of Blackstone, KKR, and Brookfield, marking the largest foreign direct investment in Kuwait's history. This deal, known as Project Peregrine, allows KPC to unlock capital while retaining operational control of its crude oil pipeline network.124
Under the terms, KPC's subsidiary, Kuwait Oil Company (KOC), will maintain a 51% stake in the joint venture, while the consortium will collectively hold 49%. The consortium will pay $7.85 billion upfront, with additional payments based on the volume of crude oil transported through the network over a 20.5-year period.35
Kuwait's pipeline network, comprising 13 pipelines spanning approximately 320 kilometers (199 miles), is crucial for linking the country's oilfields to export terminals. The deal is expected to support KPC's capital expenditure plans, including a target of 4 million barrels per day of crude oil production capacity by 2035.6
KPC Deputy Chairman and CEO Shaikh Nawaf Saud Al-Sabah emphasized that this transaction signals Kuwait's attractiveness to global capital, despite regional challenges. The investment reflects confidence in Kuwait's resilience and the quality of KPC's assets, as stated by KKR co-CEOs Joe Bae and Scott Nuttall.
This agreement is part of a broader trend of infrastructure monetization in the Gulf, showcasing Kuwait's efforts to diversify its economy and attract international investment.
“The deal, named Project Peregrine, is described as the largest foreign direct investment in Kuwait's history. It gives the consortium a 49% stake in a joint venture while Kuwait Oil Company retains 51% ownership and full operational control of the 13-pipeline, 320-kilometer network.”
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