Kuwait Signs $16 Billion Pipeline Deal With Global Consortium

Shaikh Nawaf Saud Al-Sabah, Deputy Chairman and CEO of Kuwait Petroleum Corporation, announced the signing of a $16 billion lease-and-lease-back agreement for Kuwait's entire domestic and export crude oil pipeline network. Known as Project Peregrine, the deal represents the largest foreign direct investment in Kuwait's history.

The agreement establishes a joint venture between Kuwait Oil Company and a consortium comprising Blackstone, Brookfield, and KKR. The consortium holds a 49% stake, while Kuwait Oil Company retains a 51% majority stake and full operational control over the network, which consists of 13 pipelines spanning approximately 320 kilometers. The arrangement lasts for 20.5 years and utilizes a volume-based tariff system, though the Kuwaiti state retains all production and refining decisions.

The transaction is expected to provide $7.85 billion in upfront proceeds to fund capital expenditure plans, including a goal to reach a production capacity of 4 million barrels per day by 2035. The deal is currently subject to regulatory and legal approvals. This investment occurs during a period of regional geopolitical tension and reports of Iranian strikes on Kuwaiti infrastructure.