A consortium including Brookfield Corp., Blackstone, and KKR finalized a $16 billion lease-and-leaseback agreement with Kuwait Petroleum Corporation (KPC). The 20.5-year deal for the national oil pipeline network marks the largest foreign direct investment in Kuwait’s history.
Kuwait Oil Company (KOC) will retain a 51% controlling stake in the newly formed joint venture. The private equity consortium will hold the remaining 49% interest.
KOC receives $7.85 billion in upfront proceeds from the transaction. The subsidiary maintains full ownership and operational control of the 13 pipelines.
KPC will use the unlocked capital for strategic investments. These initiatives include expanding the nation's crude oil production capacity.