PE FORUM > Blog > Fundraising News > deals > Kuwait Petroleum Corporation Secures $16 Billion Pipeline Deal, Kuwait’s Largest-Ever FDI
– Kuwait Petroleum Corporation (KPC) subsidiary Kuwait Oil Company (KOC) has signed a US$16 billion lease-and-lease-back agreement covering KOC’s entire domestic and export pipeline network.
– The consortium of international infrastructure and institutional investors is led by Blackstone, Brookfield and KKR.
– A newly formed Kuwaiti-incorporated JV will lease usage rights to 13 KOC pipelines, spanning approximately 320 km.
– The JV will grant KOC exclusive use, operational and maintenance rights over the pipelines for 20.5 years, in exchange for a volume-based tariff.
– KOC will retain 51% of the JV, while Blackstone, Brookfield and KKR will collectively hold 49%, with equal stakes.
– KOC will retain full ownership and operational control of the pipeline network.
– The transaction will not restrict Kuwait’s oil production or refining volumes, which remain under the control of the State of Kuwait.
– KOC is expected to receive US$7.85 billion in upfront proceeds at closing.
– Proceeds will support KPC’s capital expenditure plans, including its target of 4 million barrels per day of crude production capacity by 2035.
– The transaction is designed to diversify Kuwait’s sources of capital and attract greater global institutional investment.
– At $16 billion, the deal represents the largest foreign direct investment in Kuwait’s history.
– The transaction is also among the first major inward investments in the Arabian Gulf since the onset of recent regional tensions, highlighting investor confidence in Kuwait.
– KPC CEO Shaikh Nawaf Saud Al-Sabah called Project Peregrine a “defining milestone” for Kuwait’s economic development and emphasized that the deal preserves national ownership and operational control.
– KKR Co-CEOs Joe Bae and Scott Nuttall said the investment reflects confidence in Kuwait and KKR’s commitment to providing long-term capital for strategic infrastructure.
– Brookfield CEO Bruce Flatt highlighted the firm’s long-standing relationship with Kuwait and its support for the country’s energy infrastructure.
– Blackstone Chairman and CEO Stephen A. Schwarzman said Kuwait’s energy strength and economic diversification efforts make it an attractive destination for international capital.
– The JV is intended to act as a catalyst for further global investor participation in Kuwait’s economy and support the country’s long-term diversification agenda.
– The consortium of international infrastructure and institutional investors is led by Blackstone, Brookfield and KKR.
– A newly formed Kuwaiti-incorporated JV will lease usage rights to 13 KOC pipelines, spanning approximately 320 km.
– The JV will grant KOC exclusive use, operational and maintenance rights over the pipelines for 20.5 years, in exchange for a volume-based tariff.
– KOC will retain 51% of the JV, while Blackstone, Brookfield and KKR will collectively hold 49%, with equal stakes.
– KOC will retain full ownership and operational control of the pipeline network.
– The transaction will not restrict Kuwait’s oil production or refining volumes, which remain under the control of the State of Kuwait.
– KOC is expected to receive US$7.85 billion in upfront proceeds at closing.
– Proceeds will support KPC’s capital expenditure plans, including its target of 4 million barrels per day of crude production capacity by 2035.
– The transaction is designed to diversify Kuwait’s sources of capital and attract greater global institutional investment.
– At $16 billion, the deal represents the largest foreign direct investment in Kuwait’s history.
– The transaction is also among the first major inward investments in the Arabian Gulf since the onset of recent regional tensions, highlighting investor confidence in Kuwait.
– KPC CEO Shaikh Nawaf Saud Al-Sabah called Project Peregrine a “defining milestone” for Kuwait’s economic development and emphasized that the deal preserves national ownership and operational control.
– KKR Co-CEOs Joe Bae and Scott Nuttall said the investment reflects confidence in Kuwait and KKR’s commitment to providing long-term capital for strategic infrastructure.
– Brookfield CEO Bruce Flatt highlighted the firm’s long-standing relationship with Kuwait and its support for the country’s energy infrastructure.
– Blackstone Chairman and CEO Stephen A. Schwarzman said Kuwait’s energy strength and economic diversification efforts make it an attractive destination for international capital.
– The JV is intended to act as a catalyst for further global investor participation in Kuwait’s economy and support the country’s long-term diversification agenda.