Published: July 30, 2026 | Category: Private Equity / Infrastructure
Consortium takes 49% stake in state oil pipeline network in largest foreign investment in Gulf state’s history, as Iranian strikes on energy sites continue.
Blackstone, Brookfield and KKR have agreed to pay $16 billion for a leasehold stake in Kuwait’s crude oil pipeline network, in what Kuwait Petroleum Corporation called the largest foreign direct investment in the country’s history.
Under the agreement, announced on July 25, the three firms will collectively hold a 49 per cent stake in a new joint venture with Kuwait Oil Company, KPC’s subsidiary, with each investor taking an equal one-third share. KOC will retain a 51 per cent majority stake and full ownership and operational control of the network.
The joint venture, named Project Peregrine, will lease usage rights to KOC’s 13 pipelines spanning roughly 320 kilometres of domestic and export infrastructure. KOC will then lease back exclusive use, operational and maintenance rights for 20.5 years in exchange for a volume-based tariff.
KPC said the structure is expected to generate $7.85 billion in upfront proceeds for KOC at closing, which it will use to help fund capital spending — including a target of 4 million barrels a day of crude production capacity by 2035.
Shaikh Nawaf Saud Al-Sabah, KPC’s deputy chairman and chief executive, said the transaction “sends a powerful signal that Kuwait continues to rise as an attractive destination for global capital, even amid a challenging regional environment.” He did not refer directly to the Iranian strikes that have hit Kuwaiti infrastructure in recent months.
Kuwait’s Electricity and Water Ministry said a power and desalination plant was struck over the weekend before the deal was announced, causing a fire and disrupting electricity supplies. Iran has repeatedly targeted energy, power and water facilities across Kuwait, Bahrain and the UAE since the spring, in retaliation for U.S. and Israeli strikes on Iranian targets.
The agreement marks KKR’s first direct investment in Kuwait. KKR has committed nearly $5 billion in equity across the Middle East over the past 18 months, the firm said, including a prior investment in Saudi Arabia’s Acwa Power. Bruce Flatt, chief executive of Brookfield Corporation, said the firm was “proud to support Kuwait as it continues to build out its vital energy infrastructure.” Stephen Schwarzman, Blackstone’s chairman and chief executive, said the deal deepens “Blackstone’s nearly four-decade partnership with Kuwait.”
Centerview Partners, HSBC and JPMorgan advised KPC on the transaction. Jefferies advised Blackstone. The transaction is the first major inward investment announced in the Arabian Gulf since the current round of regional hostilities began, and KPC said it expects the joint venture to serve as a template for further foreign participation in Kuwait’s economy.
Deal Structure at a Glance
| Term | Detail |
|---|---|
| Total deal value | $16 billion |
| Consortium stake | 49% (Blackstone, Brookfield, KKR — equal thirds) |
| KOC stake | 51% (retains operational control) |
| Pipeline network | 13 pipelines, ~320 km |
| Lease term | 20.5 years, volume-based tariff |
| Upfront proceeds to KOC | $7.85 billion |
| KOC production target | 4 million bbl/day by 2035 |
Sources
- KPC/Blackstone joint press release, “Kuwait Oil Company Signs US$16.0 Billion Infrastructure Partnership… With a Consortium Comprising Blackstone, Brookfield and KKR,” July 25, 2026
- The National — “Kuwait signs $16bn oil pipeline lease deal with Blackstone, Brookfield and KKR,” July 25, 2026
- Bloomberg — “Kuwait Signs $16 Billion Pipeline Deal With Blackstone, Brookfield, KKR,” July 25, 2026
- CNBC — “Blackstone, Brookfield and KKR sign $16 billion deal with Kuwait for oil pipeline network”