Kuwait Oil Company signs $16bn pipeline lease deal with Blackstone‑led consortium

Kuwait Petroleum Corporation's subsidiary, Kuwait Oil Company (KOC), has entered a $16 bn lease‑and‑lease‑back agreement for its entire domestic and export pipeline network. The deal creates a joint venture that will lease the 13 pipelines—about 320 km—over a 20.5‑year term. KOC will hold a 51 % stake in the venture while the international consortium led by Blackstone, Brookfield and KKR will own the remaining 49 % equally. In return, the consortium will receive a volume‑based tariff and exclusive rights to operate, maintain and use the pipelines.

The transaction is expected to generate roughly $7.9 bn in upfront proceeds for KOC, funding Kuwait's capital‑expenditure program that aims to raise crude‑oil production capacity to 4 million barrels per day by 2035. KPC CEO Shaikh Nawaf Al‑Sabah described the arrangement as the largest foreign direct investment in Kuwait’s history, signalling the country’s appeal to global investors despite regional volatility. The agreement remains subject to standard regulatory approvals under Kuwaiti law.