Kuwait Petroleum Corporation has agreed to a $16 billion lease-and-leaseback arrangement for its crude oil pipeline network with Blackstone, KKR and Brookfield Asset Management, a transaction the state oil company calls the largest foreign direct investment in Kuwait's history.
Under the deal, dubbed Project Peregrine, subsidiary Kuwait Oil Company will form a joint venture with the three U.S. investment firms spanning 20.5 years. The investors will hold a combined 49% stake, while Kuwait Oil Company retains a controlling 51% share. Closing is expected to yield $7.85 billion in upfront cash proceeds.
The infrastructure involved consists of 13 pipelines stretching roughly 320 kilometres across the Gulf state.