Kuwait Signs $16B Pipeline Lease Deal

Kuwait secured a $16 billion lease-and-lease-back deal for its entire domestic and export pipeline network with a consortium led by Blackstone, Brookfield, and KKR, marking the largest foreign direct investment in Kuwait’s history. A new Kuwaiti joint venture will hold 51% of the venture while the consortium holds 49% on equal terms. The 20.5-year agreement covers the pipelines, with tariffs tied to oil flow and no production restrictions on Kuwait. Upfront proceeds are about $7.85 billion to Kuwait Oil Co. to support Kuwait’s target to expand crude production capacity to 4 million barrels per day by 2035. The deal signals strong international interest in Kuwait’s assets and diversifies funding sources, with KOC retaining full ownership and operational control of the network. The transaction comes amid a broader push to attract foreign investment and develop Kuwait’s domestic economy.