Kuwait Secures Record US$16 Billion Infrastructure Partnership in Landmark Foreign Investment Deal
Kuwait Oil Company (KOC) has signed a landmark US$16 billion infrastructure partnership with a consortium comprising Blackstone, Brookfield and KKR, in what Kuwait Petroleum Corporation (KPC) describes as the largest foreign direct investment transaction in Kuwait’s history.
The agreement, known as Project Peregrine, establishes a new joint venture under a 20.5-year lease-and-leaseback structure covering Kuwait’s domestic and export crude oil pipeline network. The transaction is designed to unlock capital from existing infrastructure while ensuring the strategic assets remain under national operational control.
Under the agreement, KOC will retain a 51% ownership stake and continue to operate and manage the pipeline network, while the consortium will acquire the remaining 49% interest, with Blackstone, Brookfield and KKR each holding an equal share of that stake. The investment follows a competitive bidding process conducted by the company.
The infrastructure portfolio comprises 13 crude oil pipelines extending approximately 320 kilometres across Kuwait, connecting production facilities with export infrastructure and key processing assets. While the consortium will invest in the infrastructure through the lease arrangement, KOC will continue to oversee the operation, maintenance and management of the network throughout the partnership.
According to KPC, the transaction is expected to generate approximately US$7.85 billion in upfront proceeds upon financial close. The company said the capital will support its long-term investment programme, including upstream projects aimed at increasing Kuwait’s crude oil production capacity to 4 million barrels per day by 2035.
The transaction reflects a broader trend among Gulf energy producers to attract institutional capital into mature infrastructure assets while retaining strategic ownership and operational oversight. Such structures enable national oil companies to release capital for future investment without divesting control of critical energy infrastructure.
For investors, the participation of Blackstone, Brookfield and KKR demonstrates continued interest among leading global infrastructure managers in long-term energy assets in the Gulf. The agreement also highlights Kuwait’s efforts to diversify financing options for major energy investments while supporting future production growth.
Financial advisers on the transaction included Centerview Partners, HSBC and JPMorgan, reflecting the scale and complexity of the financing structure underpinning the landmark agreement.
The partnership represents a significant milestone in Kuwait’s energy investment strategy, combining international private capital with continued state stewardship of critical oil infrastructure as the country advances its long-term production and economic development objectives.
