Sheikh Nawaf al-Sabah, CEO of Kuwait Petroleum Corp., speaks through the CERAWeek by S&P World convention in Houston, Texas, March 11, 2025.
F. Carter Smith | Bloomberg | Getty Pictures
Kuwait Petroleum Company (KPC) has signed a $16 billion deal to lease and lease again its crude oil pipeline community with a consortium comprising world funds Blackstone, Brookfield Asset Administration and KKR, the state-owned Gulf agency mentioned on Saturday.
It mentioned it was the biggest overseas direct funding within the nation’s historical past.
Underneath the funding known as Challenge Peregrine, KPC’s unit Kuwait Oil Firm (KOC) is establishing a three way partnership with the three world buyers in a lease-and-leaseback construction for a 20.5-year interval that features a volume-based tariff, KPC mentioned in an announcement.
“This transaction sends a robust sign that Kuwait continues to rise as a sexy vacation spot for world capital, even amid a difficult regional surroundings,” KPC Deputy Chairman and CEO Shaikh Nawaf Saud Al-Sabah mentioned within the assertion.
The method for the stake sale was launched simply earlier than joint U.S.-Israeli strikes on Iran on February 28, Reuters beforehand reported, citing sources.
Iran continues to assault infrastructure in Kuwait and elsewhere within the area after an interim truce between the U.S. and Iran that was meant to finish the Iran battle collapsed final month.
Iran mentioned on Friday it had attacked U.S. navy tools depots in northern Kuwait, and the positions of U.S. troops at Camp Arifjan and at Camp Doha, close to Kuwait Metropolis.
Frequent construction
The KPC deal is a part of a broader push by Gulf state oil firms and sovereign buyers to lift funds from infrastructure belongings and appeal to overseas capital, as they appear to fund home funding plans.
It follows pipeline fundraisings by Saudi Arabia’s Aramco, Abu Dhabi Nationwide Oil Firm and Bahrain’s Bapco Energies.
Blackstone, Brookfield and KKR will collectively maintain a 49% stake within the three way partnership, whereas KOC will retain a 51% stake in addition to full possession and operational management of the community, which includes 13 pipelines spanning a complete of round 320 kilometers (199 miles).
The transaction is predicted to generate $7.85 billion in upfront proceeds at closing, KPC mentioned, including it’ll help the oil firm’s capital expenditure plans.
KPC’s pipeline community transports crude oil and refined merchandise throughout Kuwait, linking the nation’s oilfields to export terminals on the Arabian Gulf.
Centerview Companions, HSBC and JP Morgan acted as monetary advisors to KPC.
