KOC Signs US$16 Billion Pipeline Infrastructure Partnership with Blackstone, Brookfield and KKR

Kuwait Petroleum Corporation announced on 25 July 2026 that its wholly owned subsidiary, Kuwait Oil Company, has signed a US$16 billion lease-and-leaseback agreement over its crude oil pipeline network with a consortium of Blackstone, Brookfield and KKR. KPC describes the transaction, known as Project Peregrine, as the largest foreign direct investment in Kuwait's history.

The structure places 13 pipelines, spanning approximately 320 kilometres, into a newly incorporated Kuwaiti joint venture in which KOC holds 51 per cent and the three investors hold 49 per cent between them in equal proportions. The joint venture leases the usage rights from KOC and grants back exclusive use, operation and maintenance rights for 20.5 years against a volume-based tariff. KOC retains full ownership and operational control, and the arrangement imposes no restriction on refining throughput or production volumes, which remain matters for the State.

Upfront proceeds on closing are expected to be US$7.85 billion, directed to KPC's capital expenditure programme and its target of four million barrels per day of crude production capacity by 2035. The agreement is governed by Kuwaiti law and remains subject to customary closing conditions and regulatory approvals. Centerview Partners, HSBC and J.P. Morgan advised KPC. Deputy Chairman and Chief Executive Officer Shaikh Nawaf Saud Al-Sabah said the transaction delivers on the commitment made at the Kuwait Oil & Gas Show in February 2026 to bring international investors into strategic infrastructure while preserving national ownership and operational control.

WEFAQ's view: the transaction follows closely on Decree-Law No. 67 of 2026, which restated KPC as an institution managed on commercial bases, confirmed its powers to incorporate and restructure subsidiaries, and lifted certain prior-control requirements. Counterparties and suppliers across the KPC group should expect the joint venture model to be tested again on other asset classes.

Read more: for the full analysis of the legal architecture behind the transaction and what it signals for foreign investment in Kuwaiti strategic assets, read our companion blog article: 'From Decree-Law No. 67 to Project Peregrine: The Legal Architecture Behind Kuwait's Largest Inward Investment'.