State-owned Kuwait Petroleum Corp. (KPC) has announced a landmark $16 billion lease-and-lease-back agreement for its domestic and export pipeline network with an international consortium led by Blackstone, Brookfield, and KKR.

The deal, titled "Project Peregrine," marks the largest foreign direct investment in Kuwait's history and ranks among the first major inward investments in the Arabian Gulf region following recent regional tensions.

Under the agreement announced on Friday, July 24, 2026, a newly formed Kuwaiti joint venture will lease the usage rights to Kuwait Oil Co.'s (KOC) 13 pipelines, spanning roughly 320 kilometres (200 miles).

The venture will grant back exclusive operational, maintenance, and usage rights to KOC for 20.5 years in exchange for a volume-based tariff.

KOC will hold a 51% majority stake in the joint venture, with the investor consortium holding the remaining 49% in equal shares.

As part of the agreement, KOC, the subsidiary responsible for Kuwait's crude oil exploration and transport, will maintain full ownership and operational control of the network.

The transaction is expected to generate $7.85 billion in upfront proceeds for KOC upon closing. The capital will support KPC’s plan to reach a crude oil production capacity of 4 million barrels per day by 2035, while furthering national efforts to attract global capital.

"This transaction sends a powerful signal that Kuwait continues to rise as an attractive destination for global capital, even amid a challenging regional environment," said Shaikh Nawaf Saud Al-Sabah, deputy chairman and CEO of KPC.

He noted that the project fulfills promises by Prime Minister Shaikh Ahmad Abdullah Al-Ahmad Al-Sabah to draw top-tier global investors while preserving national control over strategic infrastructure.

Leaders from Blackstone, Brookfield, and KKR praised the long-term partnership, citing confidence in Kuwait's energy sector and economic stability.

The transaction will not impose restrictions on Kuwait's refining output or production volumes, which remain determined by state decisions.

Kuwait’s latest decision follows months of talks and deliberation, which began earlier this year, with initial reports indicating that the KPC was eyeing $7 billion in the sale of its major pipeline network to global investors.

Governed by Kuwaiti law, the deal is subject to customary closing conditions and regulatory approvals, with Centerview Partners, HSBC, and J.P. Morgan serving as financial advisors to KPC.

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