Kuwait's state-owned petroleum firm signed a $16 billion pipeline infrastructure deal with international private equity giants Blackstone, KKR and Brookfield, it announced Saturday. Kuwait Petroleum Corporation (KPC) said its oil subsidiary signed a lease-a
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Kuwait's state-owned petroleum firm signed a $16 billion pipeline infrastructure deal with international private equity giants Blackstone, KKR and Brookfield, it announced Saturday.
Kuwait Petroleum Corporation (KPC) said its oil subsidiary signed a lease-and-lease-back agreement for the "entire domestic and export pipeline network" with the international consortium.
The investment comes as hydrocarbon-rich Gulf nations scramble to boost output following Iranian attacks and the closure of the Strait of Hormuz, a vital waterway for energy exports.
Under the deal, which will last more than two decades, the consortium led by New York-based Blackstone, Canada's Brookfield and US investors KKR will take a 49 per cent share of Kuwait's 320 kilometre (199 mile) pipeline network, with the Kuwaiti firm retaining 51 per cent.
The joint venture "represents the largest foreign direct investment in Kuwait's history and a defining milestone for our country's economic development," said Nawaf Saud Al-Sabah, the Kuwait Petroleum Corporation's chief executive.
The involvement of the three investment multinationals, he added, "reflects confidence in Kuwait's resilience, the quality of KPC's assets and our long-term vision for the country's energy sector".
The deal is expected to generate upfront proceeds of $7.85 billion for Kuwait Oil Company (KOC) as it seeks to expand crude oil production capacity to four million barrels per day by 2035.
