Kuwait Petroleum Signs $16 Billion Pipeline Deal with Blackstone, Brookfield, and KKR
Kuwait Petroleum Corporation (KPC) has signed a landmark $16 billion lease-and-leaseback deal for its crude oil pipeline network with an international consortium of private equity firms: Blackstone Group Inc. (BX), Brookfield Asset Management Inc. (BAM), and KKR & Co. Inc. (KKR). The agreement, named Project Peregrine, involves a joint venture where the three investors will collectively hold 49% while KPC's subsidiary Kuwait Oil Company retains 51%, along with full ownership and operational control of the network. The deal is expected to generate $7.85 billion in upfront proceeds for KOC, supporting its capital expenditure plans. The pipeline system spans approximately 320 kilometers (199 miles) across Kuwait's oilfields and export terminals on the Arabian Gulf. This transaction marks a significant step by Gulf state-owned firms seeking foreign investment amid regional tensions and follows similar infrastructure deals by Saudi Aramco and other Gulf energy companies.
Topics: energy foreign_investment gulf_economy