Kuwait Petroleum Corporation subsidiary Kuwait Oil Company (KOC) signed a $16 billion lease-and-lease-back agreement for its oil pipeline network. A consortium led by Blackstone, Brookfield, and KKR partnered on the transaction.
The deal represents the largest single foreign direct investment in Kuwait’s history. The agreement spans a 20.5-year term.
The investor consortium will hold a 49% stake in a newly established joint venture. KOC retains a majority 51% share in the venture. KOC maintains full ownership and operational control of the 320-kilometer pipeline network.
The transaction generates $7.85 billion in immediate upfront proceeds. KOC will use the funds to support its capital expenditure plans. The move follows a regional trend of Gulf state oil companies monetizing infrastructure to attract foreign capital.