Kuwait’s KPC signs lease and leaseback deal for oil pipeline network

By the Editorial Team · Monday, July 27, 2026

Kuwait Petroleum Corporation has agreed to lease and lease back its crude oil pipeline network in a $16 billion deal with investment firms Blackstone, Brookfield, and KKR, forming a joint venture that grants the consortium a 49 percent stake while KPC retains control. This landmark foreign investment aims to boost Kuwait’s energy sector liquidity and modernization efforts amid regional tensions and follows similar asset monetization moves by other Gulf oil companies.

Kuwait Petroleum Corporation (KPC) has reached a US$16 billion agreement to lease and subsequently lease back its crude oil pipeline network, marking the largest foreign direct investment in the country’s history. The deal, announced on Saturday, involves a consortium of global investment funds Blackstone, Brookfield, and KKR.

Under the arrangement, known as Project Peregrine, KPC’s subsidiary Kuwait Oil Company (KOC) will form a joint venture with the three investors for a 20.5-year period. The transaction features a volume-based tariff system and is structured to allow the consortium to hold a combined 49 percent stake in the joint venture. KOC will maintain a 51 percent interest along with full ownership and operational control over the pipeline network.

The asset in question includes 13 pipelines covering approximately 320 kilometers. This move is part of a broader initiative by Gulf state oil firms and sovereign wealth funds to attract foreign capital by monetizing infrastructure assets. Similar transactions have recently been undertaken by Saudi Arabia’s Aramco, Abu Dhabi National Oil Company, and Bahrain’s Bapco Energies.

Shaikh Nawaf Saud Al-Sabah, KPC’s deputy chairman and CEO, described the deal as a strong indicator of Kuwait’s appeal to international investors despite ongoing regional challenges. The lease and leaseback agreement aims to enhance liquidity and investment capacity for Kuwait’s energy sector.

The timing of the stake sale process is notable. It began shortly before joint U.S.-Israeli military strikes on Iran on February 28, amid rising tensions in the region. Following the collapse of a temporary truce between the United States and Iran last month, Iran has continued to target infrastructure within Kuwait, adding to geopolitical risks.

Nevertheless, the deal underscores Kuwait's commitment to leveraging strategic partnerships to modernize its oil infrastructure and secure long-term funding. The consortium’s involvement is expected to bring not only financial resources but also global expertise to the management of Kuwait’s critical pipeline assets.

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.