Kuwait Strikes $16B Pipeline Lease-Back Deal with Blackstone, Brookfield and KKR

Kuwait has moved to attract foreign capital on an unprecedented scale. Kuwait Petroleum Corporation (KPC) and its subsidiary Kuwait Oil Company (KOC) have signed a $16 billion lease-and-leaseback agreement with a consortium led by Blackstone, Brookfield and KKR, covering the nation's full domestic and export crude oil pipeline network. The transaction, known internally as Project Peregrine, is described as the largest foreign direct investment in Kuwait's history. The agreement spans 13 pipelines totaling about 320 kilometers. The three investors will hold a combined 49% stake in a joint venture, split equally among them. KOC will retain 51% ownership and full operational control. The lease term is 20.5 years and uses a volume-based tariff. Investor returns are tied to throughput—the amount of oil moving through the pipelines—rather than directly to crude prices. The deal is expected to generate $7.85 billion in upfront proceeds, which KPC intends to direct toward capital expenditures. Centerview Partners, HSBC and JPMorgan served as financial advisers. The structure mirrors a strategy already used by Saudi Aramco and Abu Dhabi's ADNOC: monetizing infrastructure to bring in overseas capital while keeping sovereign control of core operations. KPC Deputy Chairman Shaikh Nawaf Saud Al-Sabah said the agreement underscores Kuwait's appeal to global investors. The timing is also significant. With regional tensions ongoing, including attacks on Kuwaiti infrastructure, the transaction is viewed as a signal that Kuwait remains open for business and that international investors are prepared to commit long-term capital despite geopolitical risk.