Kuwait Signs US$16bn Oil Pipeline Deal With Global Investors

Kuwait Petroleum Corporation (KPC) has announced that its wholly owned subsidiary, Kuwait Oil Company (KOC), has signed a US$16.0 billion lease-and-leaseback agreement involving Kuwait's entire domestic and export crude oil pipeline network.

The agreement is being carried out through a newly established joint venture (JV) that will include leading international investment firms Blackstone, Brookfield and KKR. The transaction represents the largest foreign direct investment (FDI) ever made in Kuwait and the country's biggest energy infrastructure partnership to date.

The project also marks the first time major global institutional investors have committed long-term capital to Kuwait's midstream energy infrastructure.

Joint Venture Structure and Ownership

Under the agreement, a newly incorporated Kuwaiti joint venture will receive the usage rights for all 13 crude oil pipelines, covering approximately 320 kilometres of Kuwait's domestic and export pipeline network.

The partnership has been structured as a 20.5-year lease-and-leaseback arrangement that includes a volume-based tariff.

Ownership of the new joint venture will be divided as follows:

• Kuwait Oil Company (KOC): 51%
• Consortium of Blackstone, Brookfield and KKR: 49%

Each of the three investment firms will hold an equal one-third share of the consortium's 49% interest under identical terms.

Despite the investment, KOC will continue to retain full ownership and operational control of the entire pipeline network throughout the agreement.

Kuwait Retains Full Control Over Oil Production

KPC confirmed that the transaction does not place any restrictions on Kuwait's crude oil production or refining activities.

The joint venture will grant KOC exclusive rights to operate, maintain and use the pipeline assets during the 20.5-year period. Decisions regarding production volumes and refinery throughput will continue to remain entirely under the authority of the State of Kuwait.

US$7.85 Billion Expected to Support Future Investments

Once the transaction reaches financial close, the joint venture is expected to provide approximately US$7.85 billion in upfront proceeds to Kuwait Oil Company.

According to KPC, these funds will help support future capital expenditure plans, including the company's strategy to increase Kuwait's crude oil production capacity to 4 million barrels per day by 2035.

The agreement also supports Kuwait's broader objective of diversifying funding sources while strengthening partnerships with international investors.

Largest Foreign Direct Investment in Kuwait

KPC described the agreement as the largest foreign direct investment in Kuwait's history.

The corporation said the scale of the investment reflects the strength of Kuwait Oil Company's infrastructure, KPC's operational management and continued international confidence in Kuwait as an investment destination.

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The partnership also stands among the first significant inward investments into the Arabian Gulf following recent regional geopolitical tensions, highlighting investor confidence in Kuwait's economy and long-term energy strategy.

KPC CEO Highlights Strategic Importance

Shaikh Nawaf Saud Al-Sabah, Deputy Chairman and Chief Executive Officer of Kuwait Petroleum Corporation, described the project as a major milestone for Kuwait.

He said the agreement fulfils the commitment announced by His Highness Prime Minister Shaikh Ahmad Abdullah Al-Ahmad Al-Sabah during the Kuwait Oil & Gas Show (KOGS) held in February 2026 to attract leading international investors into Kuwait's strategic infrastructure while maintaining full national ownership and operational control.

He stated that welcoming Blackstone, Brookfield and KKR as long-term partners demonstrates international confidence in Kuwait's resilience, the quality of KPC's assets and the country's long-term energy vision.

According to him, the transaction also sends a strong message that Kuwait continues to attract global investment despite ongoing regional challenges.

Global Investment Firms Express Confidence in Kuwait

Joe Bae and Scott Nuttall, Co-Chief Executive Officers of KKR, said Kuwait has built its position as one of the world's leading energy producers through decades of careful investment and responsible management.

They said the investment reflects KKR's confidence in Kuwait and its commitment to providing long-term capital for strategic infrastructure projects while expanding its partnership with the country.

Bruce Flatt, Chief Executive Officer of Brookfield Corporation, said Kuwait has been an important long-term partner for Brookfield. He noted that the company is proud to support Kuwait's continued investment in essential energy infrastructure alongside its partners.

Stephen Schwarzman, Chairman, Chief Executive Officer and Co-Founder of Blackstone, said Kuwait's leadership, long-term vision and energy resources have made it an attractive destination for international investment. He added that Blackstone is pleased to support the country's critical infrastructure while strengthening its partnership with Kuwait.

Transaction Subject to Regulatory Approvals

KPC stated that the agreement will be governed under Kuwaiti law and remains subject to customary closing conditions and regulatory approvals before completion.

The corporation also confirmed that Centerview Partners, HSBC, and J.P. Morgan acted as financial advisers on the transaction.