Kuwait Petroleum Corporation (KPC) announced that its subsidiary, Kuwait Oil Company (KOC), has signed a $16 billion lease and leaseback agreement for its domestic crude oil export pipeline network with a consortium led by investment funds managed by Blackstone, Brookfield, and KKR.
The agreement will see Kuwait Oil Company establish a joint venture with the three investors under a 20.5-year lease and leaseback structure. The arrangement includes a tariff mechanism linked to pipeline throughput volumes.
According to KPC, the transaction represents the largest foreign direct investment in Kuwait’s history.
Under the agreement, the investor consortium will hold a 49 percent stake in the joint venture, while KOC will retain a 51 percent stake, along with ownership and operational control of the pipeline network.
The network comprises 13 pipelines spanning approximately 320 kilometers, transporting crude oil and refined petroleum products between Kuwait’s oilfields and export terminals on the Arabian Gulf.
KPC stated that the transaction is expected to generate $7.85 billion in upfront proceeds upon completion, with the funds supporting the company’s capital expenditure programs.
Sheikh Nawaf Saud Nasser Al-Sabah, Vice Chairman and Chief Executive Officer of KPC, emphasized that the agreement reflects Kuwait’s ability to attract international investment and supports the company’s long-term financing strategy.
The transaction is part of a broader trend among Gulf energy companies to raise capital through infrastructure assets while retaining operational control. Similar transactions have been completed by Saudi Aramco, Abu Dhabi National Oil Company (ADNOC), and Bapco Energies.
KPC highlighted that the lease and leaseback structure allows the company to secure long-term financing while maintaining ownership and day-to-day management of its strategic pipeline network.
