Kuwait inks $16 billion pipeline lease deal
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Kuwait has agreed a $16 billion, 20.5-year lease-and-leaseback transaction for its national crude oil pipeline network with a consortium led by U.S. private equity firms Blackstone and KKR, alongside Canada’s Brookfield Asset Management. The deal, known as Project Peregrine, grants the investor group a 49% equity stake in a joint venture holding all 13 main crude export pipelines, covering about 320 kilometers. State-owned Kuwait Oil Company retains 51% control and operational authority. The transaction immediately provides $7.85 billion in liquidity to Kuwait Petroleum Corporation to support plans to lift crude production capacity to 4 million barrels per day by 2035.
More context
Timeline
- 2019 Gulf producers expand midstream monetization strategies
- 2021 Regional pipeline lease deals gain traction
- Early 2023 Kuwait explores pipeline monetization options
- Mid 2023 Consortium negotiations with Kuwait accelerate
- Recently Project Peregrine transaction terms finalized
- This week Kuwait announces $16 billion pipeline deal
- Immediately Kuwait Petroleum receives $7.85 billion liquidity
- By 2035 Kuwait targets four million barrels capacity
Why it matters
This deal could influence global oil prices. If you're a driver, homeowner, or business owner, that matters. Keep an eye on your fuel and energy costs. If they rise, this could be a factor.
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
