Kuwait Petroleum Corporation (KPC) announced a significant $16 billion deal to lease and lease back its crude oil pipeline network with a consortium that includes Blackstone, Brookfield Asset Management, and KKR. This agreement, termed Project Peregrine, is notable as it represents the largest foreign direct investment in Kuwait to date.
The deal involves a 20.5-year lease structure where KPC's subsidiary, Kuwait Oil Company (KOC), will maintain a 51% stake and operational control of the pipeline network, which spans approximately 320 kilometers. The consortium will hold a 49% stake, and the transaction is expected to generate $7.85 billion in upfront proceeds, which will aid KPC in its capital expenditure plans.
KPC's Deputy Chairman and CEO, Shaikh Nawaf Saud Al-Sabah, emphasized that this deal signals Kuwait's attractiveness to global investors, even amidst ongoing regional conflicts, including recent tensions with Iran.
This move aligns with a broader trend among Gulf state oil companies to leverage infrastructure assets to attract foreign investment, following similar fundraising efforts by other regional oil giants like Saudi Aramco and Abu Dhabi National Oil Company. Financial advisors for the deal included Centerview Partners, HSBC, and JP Morgan