KOC Signs $16 Billion Infrastructure Deal to Meet 4 Million Bpd Output Target
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Kuwait Oil Company (KOC) has secured a landmark $16 billion infrastructure partnership for its domestic and export crude oil pipeline network. The deal is projected to yield $7.85 billion in upfront proceeds, which will fund upstream expansion projects aimed at boosting Kuwait’s crude oil production capacity to 4 million barrels per day (MMbpd) by 2035.
The agreement creates a new joint venture between KOC and an investment consortium consisting of Blackstone, Brookfield, and KKR. Under a 20.5-year lease-and-leaseback arrangement, KOC will maintain a controlling 51% stake, while the investor group will hold the remaining 49%.
While the joint venture acquires usage rights to KOC’s 320-kilometer, 13-pipeline network, KOC retains full ownership, operational control, and maintenance responsibilities for the assets. Kuwait also retains complete authority over its crude oil production levels and refinery throughput.
According to Kuwait Petroleum Corporation (KPC), the $7.85 billion in proceeds will support broader capital expenditure initiatives. These projects align with the country’s 2040 Strategy to scale up national production capacity over the next decade.
This transaction stands as the largest foreign direct investment in Kuwait’s history and marks the first time major international institutional investors have committed long-term capital to the nation’s midstream energy infrastructure.
“Project Peregrine represents the largest foreign direct investment in Kuwait’s history and a defining milestone for our country’s economic development,” said Shaikh Nawaf Saud Al-Sabah, deputy chairman and CEO of KPC. “This transaction sends a powerful signal that Kuwait continues to rise as an attractive destination for global capital, even amid a challenging regional environment.”
The consortium will invest through a newly formed, Kuwait-incorporated joint venture that will collect volume-based tariffs while leasing the pipeline network back to KOC. This framework allows Kuwait to unlock capital for future energy developments without compromising its production flexibility or operational oversight of its upstream and refining operations.
