KPC signs historic $16 billion Shaheen Project deal to boost energy investment
Blackstone, Brookfield and KKR lead largest-ever foreign investment to support oil production expansion and economic diversification
- The agreement is expected to generate $7.85 billion in upfront proceeds for Kuwait Oil Company (KOC), supporting major energy investments and the country’s long-term economic diversification strategy.
- Kuwait Oil Company will retain 51% ownership in the joint venture, while the remaining 49% stake will be shared equally among the investment consortium.
- Project fulfills the government’s vision of attracting leading global investors to participate in the development of Kuwait’s strategic infrastructure while preserving national ownership and operational control
- Transaction will not affect Kuwait’s sovereignty over its strategic energy assets. All production, refining and operational decisions will remain under the control of the State of Kuwait
Kuwait Petroleum Corporation (KPC) has announced the signing of a landmark $16 billion lease-and-leaseback agreement for Kuwait Oil Company’s domestic crude oil export pipeline network, marking the largest foreign direct investment (FDI) in Kuwait’s history.
The agreement, signed with a consortium of global infrastructure investors led by investment funds managed by Blackstone, Brookfield and KKR, is expected to generate $7.85 billion in upfront proceeds for Kuwait Oil Company (KOC), supporting major energy investments and the country’s long-term economic diversification strategy.
Under the agreement, a new Kuwait-based partnership company will be established to lease the rights to use 13 crude oil export pipelines spanning approximately 320 kilometers across the country.
Kuwait Oil Company will retain 51% ownership in the joint venture, while the remaining 49% stake will be shared equally among the investment consortium.
KOC will also maintain full ownership, operational control and maintenance responsibilities for the pipeline network under an exclusive 20.5-year operating agreement.
KPC emphasized that the transaction will not affect Kuwait’s sovereignty over its strategic energy assets. All production, refining and operational decisions will remain under the control of the State of Kuwait.
The proceeds from the transaction will help finance Kuwait’s strategic energy projects, particularly its plan to raise crude oil production capacity to 4 million barrels per day by 2035.
The agreement also supports the government’s efforts to diversify funding sources and attract long-term international investment into the national economy.
Named the Shaheen Project, the transaction represents one of the Gulf region’s largest infrastructure investment deals and one of the first major foreign investments concluded since the onset of recent regional geopolitical challenges.
KPC said the agreement reflects international investors’ continued confidence in Kuwait’s economy and energy sector.
KPC Vice Chairman and Chief Executive Officer Sheikh Nawaf Saud Nasser Al-Sabah described the Shaheen Project as a milestone in Kuwait’s economic development.
“The Shaheen Project represents the largest foreign direct investment in Kuwait’s history and a pivotal milestone in the country’s economic development,” he said.
He added that the project fulfills the government’s vision of attracting leading global investors to participate in the development of Kuwait’s strategic infrastructure while preserving national ownership and operational control.
Sheikh Nawaf welcomed Blackstone, Brookfield and KKR as long-term strategic partners, saying their participation underscores confidence in Kuwait’s economy, the strength of KPC’s assets and the country’s long-term energy strategy.
The three investment firms also reaffirmed their commitment to Kuwait.
KKR Co-Chief Executive Officers Joe Bae and Scott Nuttall said the investment reflects confidence in Kuwait’s energy sector and supports the country’s strategic infrastructure development.
Brookfield Chief Executive Officer Bruce Flatt described Kuwait as a long-standing strategic partner and said the company was proud to contribute to the continued development of the country’s energy infrastructure.
Blackstone Chairman, Chief Executive Officer and Co-Founder Stephen Schwarzman said Kuwait’s leadership, energy resources and economic diversification efforts have made it an attractive destination for international capital, adding that Blackstone was proud to strengthen a partnership with Kuwait spanning nearly four decades.
The transaction remains subject to customary regulatory approvals and legal requirements under Kuwaiti law before reaching financial close.
Centerview Partners, HSBC and JPMorgan acted as financial advisers to Kuwait Petroleum Corporation on the transaction.
