Prime Minister unveils ‘Shaheen’ pipeline partnership plan; KPC eyes largest FDI in Kuwait oil history

His Highness the Prime Minister Sheikh Ahmed Abdullah Al-Ahmed Al-Sabah announced that Kuwait Petroleum Corporation (KPC) is in talks with leading international financial institutions to establish a long-term strategic partnership that includes leasing Kuwait’s domestic crude oil pipeline network under international standards.

The announcement came during the opening of the Kuwait Oil and Gas Exhibition and Conference (KOGS 2026) at the Jaber Al-Ahmad Cultural Center, held under his patronage.

The Prime Minister said the initiative, part of the “Shaheen” project, is grounded in maximizing the economic value of strategic infrastructure assets while opening the door to international investment through carefully structured frameworks, reports Al-Rai daily.

He stressed that KPC will retain full ownership of the pipeline network, maintain operational control, and preserve absolute sovereignty in decision-making, affirming that Kuwait’s authority over its national wealth is constitutionally protected and non-negotiable. He projected the project could become the largest single foreign direct investment in Kuwait’s oil sector history once finalized in the coming months.

Sheikh Ahmed underlined that updating regulatory frameworks and fostering a transparent business climate remain government priorities, aligning with Kuwait Vision 2035, which seeks a diversified, competitive, and sustainable economy. He added that Kuwait aims to enhance operational resilience, promote innovation, and position itself as a competitive global energy hub.

In parallel, the Prime Minister announced the “Al-Saif” project, designed to engage international oil companies in developing Kuwait’s recent offshore discoveries at Nokhatha, Jazah, and Julaia fields. The initiative is expected to accelerate development, facilitate technology transfer, and support Kuwait Oil Company (KOC).

KPC Vice Chairman and CEO Sheikh Nawaf Al-Saud said Kuwait aims to raise crude oil production capacity to four million barrels per day by 2035, up nearly 25 percent from current levels, with Shaheen and Al-Saif forming key pillars of that target. He explained that Shaheen focuses on leasing crude production and export lines as a financing mechanism, while Al-Saif will help bridge the one-million-barrel-per-day capacity gap.

Al-Saud emphasized that all upcoming offshore contracts will follow Kuwait’s constitutional framework based on service contracts without concessions or ownership transfer. He also revealed progress in developing the Al-Mutriba field, gradual rebranding of KNPC fuel stations to Q8, and ongoing restructuring within the oil sector, including the near-completion of the merger between KIPIC and KNPC.

International participation featured prominently at KOGS. Saudi Energy Minister Prince Abdulaziz bin Salman praised Kuwait’s approach to partnerships and investment, stressing the importance of realistic energy transition strategies. TotalEnergies CEO Patrick Pouyanné expressed interest in expanding cooperation with Kuwait in LNG and solar energy.

The conference, attended by more than 4,000 participants, highlighted Kuwait’s continued role as a reliable global energy partner, emphasizing long-term investment, innovation, and strategic cooperation in a rapidly evolving energy landscape.