Kuwait Petroleum Corporation (KPC) has announced the launch of Project Peregrine, a landmark $16 billion pipeline agreement that marks the largest foreign direct investment (FDI) in Kuwait’s history. The deal is designed to strengthen the country’s energy infrastructure, support future production growth, and expand long-term partnerships with leading global investors.
The agreement was signed through Kuwait Oil Company (KOC), KPC’s wholly owned subsidiary responsible for the exploration, production, and transportation of crude oil on behalf of the State of Kuwait.
Project Peregrine Includes Kuwait’s Entire Pipeline Network
Under the agreement, KOC signed a lease-and-lease-back transaction covering its complete domestic and export crude oil pipeline network with a consortium of international infrastructure and institutional investors led by Blackstone, Brookfield, and KKR.
As part of the transaction, a newly established joint venture incorporated in Kuwait will lease the usage rights to 13 crude oil pipelines, stretching approximately 320 kilometers across the country.
In return, the joint venture will grant KOC exclusive rights to operate, maintain, and use the pipeline network for 20.5 years, with payments structured through a volume-based tariff.
KOC Retains Majority Ownership and Full Operational Control
The joint venture will be owned 51% by Kuwait Oil Company, while the investor consortium will collectively hold the remaining 49%, divided equally among Blackstone, Brookfield, and KKR.
Despite the investment, KOC will continue to retain full ownership and operational control of the entire pipeline system.
The agreement also confirms that the joint venture will not impose any restrictions on Kuwait’s crude production volumes or refining throughput, with all operational decisions remaining under the authority of the State of Kuwait.
$7.85 Billion Upfront Proceeds to Support Growth Plans
Once the transaction is completed, KOC is expected to receive $7.85 billion in upfront proceeds.
The funding will help finance KPC’s capital expenditure program, including its strategic objective of increasing Kuwait’s crude oil production capacity to 4 million barrels per day by 2035.
The proceeds are also expected to support Kuwait’s broader strategy of diversifying funding sources while attracting additional international investment into the national economy.
Largest Foreign Direct Investment in Kuwait’s History
KPC described Project Peregrine as the largest foreign direct investment ever completed in Kuwait.
According to the corporation, the scale of the transaction reflects the strength of Kuwait Oil Company’s asset base, KPC’s operational performance, and the continued confidence of international investors in Kuwait’s economy.
The agreement also ranks among the first major inward investments in the Gulf region since the emergence of recent regional tensions, highlighting Kuwait’s resilience and ability to maintain investor confidence.
Project Supports Kuwait’s Economic Diversification
Beyond its financial value, the joint venture is intended to encourage broader participation by international investors in Kuwait’s economy.
The initiative aligns with KPC’s long-term development strategy and Kuwait’s national vision to diversify the economy while strengthening strategic infrastructure.
KPC CEO: A Defining Milestone for Kuwait
Shaikh Nawaf Saud Al-Sabah, Deputy Chairman and Chief Executive Officer of KPC, described Project Peregrine as a historic milestone for Kuwait’s economic development.
He said the project fulfills the commitment announced by His Highness Prime Minister Shaikh Ahmad Abdullah Al-Ahmad Al-Sabah during the Kuwait Oil & Gas Show (KOGS) in February 2026, which aimed to attract world-class international investors into Kuwait’s strategic infrastructure while preserving full national ownership and operational control.
He added that welcoming Blackstone, Brookfield, and KKR as long-term strategic partners demonstrates international confidence in Kuwait’s resilience, the quality of KPC’s assets, and the country’s long-term energy vision.
According to Al-Sabah, the transaction also sends a strong message that Kuwait remains an attractive destination for global investment despite ongoing regional challenges.
Global Investors Express Confidence in Kuwait
Joe Bae and Scott Nuttall, Co-Chief Executive Officers of KKR, said Kuwait has established itself as one of the world’s leading energy producers through decades of disciplined investment and prudent management.
They noted that the agreement reflects KKR’s confidence in Kuwait and its commitment to providing long-term capital for strategic infrastructure projects.
Bruce Flatt, Chief Executive Officer of Brookfield Corporation, said Kuwait has long been an important strategic partner for the company, praising its globally recognized energy sector and expressing pride in supporting the country’s future infrastructure development.
Meanwhile, Stephen Schwarzman, Chairman, CEO, and Co-Founder of Blackstone, said Kuwait’s leadership, long-term vision, and energy resources continue to make it an attractive destination for international capital, adding that the investment strengthens Blackstone’s partnership with Kuwait, which spans nearly four decades.
Transaction Subject to Regulatory Approval
KPC confirmed that the agreement will be governed under Kuwaiti law and remains subject to customary closing conditions, regulatory approvals, and all required legal procedures.
The corporation also stated that Centerview Partners, HSBC, and J.P. Morgan acted as financial advisors throughout the transaction.
