Kuwait Oil Company Signs $16 Billion Infrastructure Partnership with Blackstone, Brookfield and KKR

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Kuwait Oil Company Signs $16 Billion Infrastructure Partnership with Blackstone, Brookfield and KKR

Kuwait Petroleum Corporation (KPC) has announced that its wholly owned subsidiary, Kuwait Oil Company (KOC), has signed a landmark $16 billion infrastructure partnership involving the country's domestic and export crude oil pipeline network with a consortium led by Blackstone, Brookfield and KKR.

Described as Kuwait's largest energy infrastructure partnership and the largest foreign direct investment (FDI) in the country's history, the transaction marks the first time leading global institutional investors have committed long-term capital to Kuwait's midstream energy infrastructure.

Landmark Joint Venture

Under the agreement, KOC will establish a newly incorporated Kuwaiti joint venture (JV) through a 20.5-year lease-and-leaseback structure covering the usage rights of its entire crude oil pipeline network.

The consortium comprising Blackstone, Brookfield and KKR will collectively acquire a 49% stake in the JV, with each investor holding an equal one-third share of that interest. KOC will retain a controlling 51% stake, along with full ownership, operational control and maintenance responsibility for the pipeline network.

The agreement includes all 13 domestic and export crude oil pipelines, spanning approximately 320 kilometres across Kuwait.

Under the leaseback arrangement, the joint venture will lease the pipeline usage rights from KOC before granting the company exclusive operational and maintenance rights in exchange for a volume-based tariff throughout the 20.5-year term.

Importantly, the transaction preserves the State of Kuwait's full authority over crude oil production and refinery throughput, with no restrictions imposed on future production volumes.

Supporting Kuwait's Energy Strategy

The partnership is expected to generate approximately $7.85 billion in upfront proceeds for KOC upon financial close.

The proceeds will support Kuwait Petroleum Corporation's long-term capital expenditure programme, including its strategic objective of increasing the country's crude oil production capacity to 4 million barrels per day by 2035 under KPC's 2040 Strategy.

The investment also supports Kuwait's broader economic diversification agenda by attracting international institutional capital while strengthening long-term partnerships with leading global infrastructure investors.

Largest Foreign Investment in Kuwait

According to KPC, the transaction represents the largest foreign direct investment ever recorded in Kuwait and ranks among the region's most significant infrastructure investments.

The company noted that the agreement reflects international confidence in Kuwait's economy, energy sector and long-term investment environment despite ongoing geopolitical challenges across the region.

KPC also expects the joint venture to encourage greater participation by international investors in future national development projects.

Leadership Comments

Shaikh Nawaf Saud Al-Sabah, Deputy Chairman and Chief Executive Officer of Kuwait Petroleum Corporation, described the agreement as a defining milestone for Kuwait's economic development.

He said the transaction fulfills the commitment announced by His Highness Prime Minister Shaikh Ahmad Abdullah Al-Ahmad Al-Sabah during the Kuwait Oil & Gas Show (KOGS) 2026 to attract world-class international investors into Kuwait's strategic infrastructure while preserving full national ownership and operational control.

Al-Sabah added that the investment demonstrates global confidence in Kuwait's resilience, the quality of KPC's assets and the country's long-term vision for its energy sector.

Global Investors Express Confidence

Joe Bae and Scott Nuttall, Co-Chief Executive Officers of KKR, said the investment reflects the firm's confidence in Kuwait's long-standing leadership in the global energy industry and its commitment to supporting strategic infrastructure through long-term capital.

Bruce Flatt, Chief Executive Officer of Brookfield Corporation, described Kuwait as a valued long-term partner and said the company is proud to support the continued expansion of the country's energy infrastructure.

Stephen Schwarzman, Chairman, Chief Executive Officer and Co-Founder of Blackstone, said Kuwait's leadership, vision and commitment to economic diversification have made it an attractive destination for international investment. He added that the partnership strengthens Blackstone's nearly four-decade relationship with Kuwait while supporting critical energy infrastructure.

The transaction will be governed under Kuwaiti law and remains subject to customary regulatory approvals and closing conditions.