Kuwait Oil Company Enters $16 Billion Pipeline Partnership With Blackstone, Brookfield, And KKR
The Kuwait Oil Company (KOC), a subsidiary of the state-owned Kuwait Petroleum Corporation (KPC), has entered into a lease-and-lease-back agreement worth $16 billion with an international consortium led by Blackstone Group Inc. (BX), Brookfield Asset Management Inc. (BAM.A) and KKR & Co. Inc. (KKR). The deal involves the entire domestic and export pipeline network of KOC, which spans approximately 320 km across 13 pipelines. The transaction is structured as a joint venture called Project Peregrine, with Blackstone, Brookfield, and KKR collectively acquiring a 49% stake in equal shares. KOC will retain the remaining 51%, maintaining full operational control over the pipeline network for a period of 20.5 years under volume-based tariffs. The deal is expected to generate $7.85 billion in upfront proceeds, which will support KPC's capital expenditure plans and its goal of reaching four million barrels per day crude oil production capacity by 2035.
Topics: energy infrastructure foreign investment joint venture pipeline network