Blackstone, KKR, and Brookfield Invest $16 Billion in Kuwait’s Oil Pipelines
On July 25, Blackstone Inc., KKR & Co. Inc., and Brookfield formed a $16 billion joint venture to acquire a 49% stake in Kuwait's domestic and export crude pipeline network under 'Project Peregrine.' The lease-and-lease-back agreement spans 320 kilometers of pipelines with volume-based tariff payments ensuring stable cash flow for the investors. This marks the largest foreign direct investment in Kuwait’s history, providing $7.85 billion upfront to support the country's goal of increasing oil production capacity to four million barrels per day by 2035. The deal aligns closely with strong second-quarter performance from both Blackstone and KKR. Blackstone reported a record $1.35 trillion in assets under management, while its infrastructure division grew 40% year-over-year to reach $90 billion in AUM. Similarly, KKR posted adjusted net income of $1.5 billion for the quarter, with strong monetization activity and increased focus on Middle Eastern energy investments. The investment underscores growing institutional interest in global infrastructure assets as part of broader real-asset strategies.
Topics: Blackstone Brookfield FDI KKR Kuwait Oil Pipelines