KOC signs $16B infrastructure deal to boost production to 4 million bpd
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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 set to yield $7.85 billion in upfront proceeds, which will fund upstream expansion projects and support Kuwait’s target of boosting crude oil production capacity to 4 million barrels per day (MMbpd) by 2035.
The transaction establishes a new joint venture between KOC and an investor consortium consisting of Blackstone, Brookfield, and KKR. Operating under a 20.5-year lease-and-leaseback structure, KOC will maintain a 51% majority stake in the venture, while the investor group will hold the remaining 49%.
The joint venture will hold usage rights to KOC’s 320-kilometer network of 13 pipelines. KOC will retain full ownership, operational control, and maintenance responsibilities for the assets, and Kuwait will preserve complete authority over its crude oil production and refinery throughput.
According to Kuwait Petroleum Corporation (KPC), the $7.85 billion in proceeds will fund capital expenditure plans aligned with the company’s 2040 Strategy to expand national crude capacity.
This transaction represents the largest foreign direct investment in Kuwait’s history and 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’s investment is structured through a newly formed, Kuwait-incorporated joint venture that will collect a volume-based tariff while leasing the pipeline network back to KOC. This arrangement unlocks capital for future energy projects without impacting Kuwait’s operational control or production flexibility.
