Overview
- KOC has created a new Kuwaiti joint venture that sells a 49% collective stake to a consortium split equally among Blackstone, Brookfield and KKR while KOC retains 51% ownership and exclusive operational control.
- The transaction, called Project Peregrine, covers all 13 domestic and export pipelines totaling roughly 320 kilometres and uses a lease-and-lease-back model that returns pipeline usage to KOC on a volume-based tariff for 20.5 years.
- KPC says the deal will generate about $7.85 billion in upfront proceeds for KOC when it closes and that the cash will fund capital spending tied to raising production capacity to four million barrels per day by 2035.
- Blackstone’s chairman praised the partnership and KPC described the agreement as the largest foreign direct investment and infrastructure partnership in Kuwait’s history.
- The structure lets Kuwait unlock private capital without ceding day-to-day control of flows or production policy and signals growing international appetite for Middle East oil infrastructure investments.