Kuwait oil pipeline lease deal

The Kuwait Petroleum Corporation subsidiary Kuwait Oil Company (KOC) signed a $16 billion lease‑and‑lease‑back agreement for the state’s domestic and export crude‑oil pipeline network. The deal creates a joint venture in which KOC retains a 51 % stake while an international consortium led by Blackstone, Brookfield Asset Management and KKR holds the remaining 49 % equally. The consortium will lease 13 pipelines covering about 320 km for 20.5 years, receiving a volume‑based tariff tied to the amount of crude transported and exclusive rights to operate, maintain and use the pipelines.

The transaction is expected to generate roughly $7.9 billion in upfront proceeds, which KOC plans to use to fund its capital‑expenditure program aimed at raising crude‑oil production capacity to four million barrels per day by 2035. KPC officials described the agreement as the largest foreign direct investment in Kuwait’s history, highlighting the country’s appeal to global investors despite heightened regional tensions and recent Iranian attacks on Gulf infrastructure.