KPC Clinches Landmark $16 Billion Pact with Global Investors

By the Editorial Team · Sunday, July 26, 2026

Kuwait Petroleum Corporation has finalized a $16 billion lease-and-leaseback deal involving its entire domestic and export pipeline network with a consortium led by Blackstone, Brookfield, and KKR. This transaction, which will generate $7.85 billion upfront for capital investments and maintain Kuwait’s control over oil production, marks the largest foreign direct investment in the country and aims to support expanding crude output to 4 million barrels per day by 2035.

Kuwait Petroleum Corporation (KPC) has announced a landmark $16 billion lease-and-leaseback agreement involving Kuwait Oil Company’s (KOC) entire domestic and export pipeline network. The deal, revealed on July 25, involves a consortium of international infrastructure and institutional investors led collectively by Blackstone, Brookfield, and KKR.

Under the terms of the agreement, a newly established Kuwait-incorporated joint venture (JV) will lease the usage rights to all 13 crude oil pipelines, which extend approximately 320 kilometers across Kuwait’s pipeline infrastructure. KOC will maintain a 51 percent majority stake in the JV, while the investor consortium will hold the remaining 49 percent equally. Despite the lease arrangement, KOC will retain full ownership as well as exclusive operational and maintenance rights to the pipeline assets for a period of 20.5 years. Importantly, the JV will not impose any restrictions on Kuwait’s refining throughput or crude oil production volumes, which remain subject to decisions made by the State of Kuwait.

This transaction is expected to generate upfront proceeds of $7.85 billion for KOC upon closing. The proceeds are planned to support KPC’s broader capital expenditure initiatives, including the corporation’s strategic target of raising Kuwait’s crude oil production capacity to 4 million barrels per day by 2035. Officials have emphasized that the arrangement reflects strong international confidence in Kuwait’s economy and energy sector and represents the largest foreign direct investment in Kuwait’s history.

In addition to providing significant immediate capital, the deal is part of Kuwait’s efforts to diversify sources of funding and deepen engagement with global investors amid ongoing regional and global economic uncertainties. Regulatory approvals for the transaction are still pending as part of the finalization process.

Overall, the Shaheen Project, as the agreement is referred to, establishes a new partnership company designed to leverage KOC’s extensive pipeline infrastructure while preserving national control over critical oil assets and production decisions. Observers note that the agreement could enhance Kuwait’s position in the regional energy market by facilitating increased investment and operational stability over the coming decades.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.