The funds acquire 49% of a joint venture with Kuwait Petroleum Corporation (KPC) in the frame of a 20,5-years lease and leaseback deal. KPC will initially fetch 7.85 billion and finance the investment plan to increase crude oil production to 4 million barrels a day by 2035
Kuwait Petroleum Corporation (KPC) signed a 16 billion US Dollars worth agreement with NYSE-listed private equity giants Blackstone, Brookfield and KKR for investing in the country’s oil pipeline in the frame of Project Peregrine. This structured lease and lease back deal is the largest foreign direct investment from international institutional player that Kuwait attracted for its midstream oil infrastructures (press release).
Under a lease and leaseback contract, the owner retains the asset and continues to manage it on an operational basis, transferring to investors only the economic rights arising from its use for a fixed period.
KPC received assistance from Centerview Partners, HSBC and JP Morgan. Kuwait Oil Company (KOC), a KPC subsidiary, will own 51% of a joint venture while the funds will share 49% in even stakes. KOC will retain full ownership of the assets and operational control of the pipeline network, whilst the joint venture will acquire the rights to use the infrastructure for 20,5 years. KOC will sublet back the network through a tariff mechanism based on the transported volumes.
The infrastructures portfolio has 13 oil pipelines (total length of 320 kilometres) that link Kuwait’s main oil fields to the export terminals on the Persian Gulf. KPC will fetch 7.85 billion US Dollars in cash after the closing. Such resources will finance the group’s investments ahead of increasing the country’s production capacity to 4 million barrels of crude oil per day by 2035, as set out in the KPC 2040 industrial strategy.
The competitive process leading to the signing of the agreement started before the military escalation between the United States, Israel and Iran. Despite the deterioration in the geopolitical situation and the attacks that targeted strategic infrastructure in the region in recent months, the consortium reaffirmed its commitment.
Sheikh Shaikh Nawaf Saud Al-Sabah, vice president and ceo of KPC, said: “The Peregrine Project is the largest foreign direct investment in Kuwait’s history and a milestone for our country’s economic development. It fulfils the commitment that His Highness the Prime Minister, Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah announced in February 2026 at the Kuwait Oil & Gas Show (KOGS) for attracting world-class international investors to strategic infrastructures whilst preserving full national ownership and operational control. We are delighted to welcome Blackstone, Brookfield and KKR as long-term partners in this historic transaction. Their investment reflects confidence in Kuwait’s resilience, the quality of KPC’s assets and our long-term vision for the country’s energy sector. This transaction sends a strong signal: Kuwait continues to establish itself as an attractive destination for global capital, even against a challenging regional backdrop.”
Joe Bae and Scott Nuttall, co-ceos of KKR, added: “Kuwait established itself as one of the world’s leading energy producers thanks to decades of targeted investment and prudent management. We have always greatly valued our partnership with Sheikh Nawaf and his team. This investment reflects our confidence in Kuwait and our commitment to providing long-term capital to support strategic infrastructure. We look forward to strengthening our collaboration and identifying further investment opportunities alongside Kuwait in the coming years.”
Bruce Flatt, the ceo of Brookfield Corporation, pointed out: “Kuwait is a long-standing and highly valued partner for Brookfield, and we always admired the way it built a world-leading energy industry. We are proud to support Kuwait in its ongoing development of vital energy infrastructure and honoured to invest alongside our long-term partners.”
Stephen Schwarzman, the chairman, ceo and co-founder of Blackstone, concluded: “Kuwait’s leadership, vision and resources made the country an attractive destination for international capital, thanks to its strength in the energy sector and the extraordinary efforts it has made to diversify its economy. We are proud to support this vital infrastructure, helping to meet the growing global demand for energy whilst strengthening Blackstone’s partnership with Kuwait, which lasted for almost forty years.”
The deal is following a consolidated trand of Gulf oil companies that in recent years started to monetise part of their energy infrastructure whilst retaining industrial control over it. In April 2021, Saudi Aramco sold 49% of Aramco Oil Pipelines Company to EIG Global Energy Partners (lead investor), Abu Dhabi’s Mubadala and further international institutional investors through a 25-years lease and leaseback deal of 12.4 billion US Dollars (press release).
In December 2021, Aramco sold 49% of Aramco Gas Pipelines Company to BlackRock Real Assets, Hassana Investment Company, Keppel Infrastructure Trust, Silk Road Fund, and China Merchants Capital with a 20-years 15.5 billion US Dollars deal. In both cases, Aramco retained a 51% stake in the special purpose vehicles, as well as full ownership and management of the infrastructure, and committed to pay a fee for the use of the pipelines (press release).
In 2020, Abu Dhabi National Oil Company (ADNOC) fetched 10.1 billion US Dollars out of the sale of 49% of ADNOC Gas Pipelines to Global Infrastructure Partners (GIP), Brookfield Asset Management, Singapore Sovereign Wealth Fund (GIC), Ontario Teachers’ Pension Plan, NH Investment & Securities, and Milan-listed Snam (press release).
In 2024, Bahrain’s Bapco Energies sold to BlackRock a minority of Saudi Bahrain Pipeline Company for undisclosed terms (press release).
