The Mina Al-Ahmadi oil refinery in Kuwait is seen in this photo on March 20, 2026. (AP Photo)
Kuwait’s state-owned petroleum firm has signed a $16 billion pipeline infrastructure deal with international private equity giants Blackstone, KKR and Brookfield, it announced on July 25.
Kuwait Petroleum Corporation (KPC) said its oil subsidiary had signed a lease-and-lease-back agreement for the “entire domestic and export pipeline network” with the international consortium.
The investment comes as hydrocarbon-rich Gulf nations scramble to boost their output following Iranian attacks and the closure of the Strait of Hormuz.
Under the deal, to last more than two decades, the consortium led by New York-based Blackstone, Canada’s Brookfield and U.S. investors KKR will take a 49 per cent share of Kuwait’s 320 kilometer pipeline network, with the Kuwaiti firm retaining 51 per cent.
The joint venture “represents the largest foreign direct investment in Kuwait’s history and a defining milestone for our country’s economic development,” the Kuwait Petroleum Corporation’s chief executive, Nawaf Saud Al-Sabah, said.
The involvement of the three investment multinationals, he added, “reflects confidence in Kuwait’s resilience, the quality of KPC’s assets and our long-term vision for the country’s energy sector.”
The deal is expected to generate upfront proceeds of $7.85 billion for Kuwait Oil Company (KOC) as it seeks to expand crude oil production capacity to four million barrels per day by 2035.
