Kuwait signs $16B pipeline deal with Blackstone, KKR, Brookfield

Kuwait Petroleum Corporation announced on Saturday that it has signed a $16 billion lease-and-leaseback deal for its crude oil pipeline network with a consortium of Blackstone ↗ 4.42%, KKR ↗ 3.53%, and Brookfield ↗ 1.40%, in what the state-owned company called the largest foreign direct investment in Kuwait's history.srnnews+2

Project Peregrine

Under the deal, dubbed Project Peregrine, KPC's subsidiary Kuwait Oil Company is establishing a joint venture with the three U.S.-based investors for a 20.5-year period that includes a volume-based tariff, according to a Reuters report citing KPC's statement. The consortium will collectively hold a 49% stake in the joint venture, while Kuwait Oil Company retains a 51% stake along with full ownership and operational control of the network, which comprises 13 pipelines spanning approximately 320 kilometres. The transaction is expected to generate $7.85 billion in upfront proceeds at closing.gurufocus+1

A Long Road to Closing

The deal caps a process that began in early 2025, when KPC first considered leasing its pipelines to fund a $65 billion upstream investment program. Reuters first reported in January 2026 that Kuwait was poised to initiate the stake sale, following a model established by Saudi Arabia and the United Arab Emirates for monetizing energy infrastructure while retaining operational control. By February, BlackRock ↗ 1.78%, Brookfield, EIG Partners, KKR, and others had expressed interest in the assets. In July, KPC asked bidders to form consortiums to consolidate the field of competitors, with Blackstone emerging as a new entrant and Macquarie dropping out of the race. The final consortium of Blackstone, KKR, and Brookfield ultimately prevailed.oilandgas360+6

Regional Context

The agreement arrives as Kuwait seeks to diversify its capital sources amid heightened regional tensions. KPC CEO Nawaf Al-Sabah said the deal highlights Kuwait's attractiveness as a global investment destination. The transaction follows a broader pattern across the Gulf, where state energy companies have turned to international infrastructure investors to unlock capital without ceding operational authority over strategic assets.reuters+1