Kuwait signs $16 billion pipeline lease, largest FDI ever

Kuwait has secured the largest foreign direct investment in its history through a $16 billion agreement with three major North American investment firms to lease a portion of its national oil pipeline network. The deal, signed by state-owned Kuwait Petroleum Corporation (KPC) with Canada’s Brookfield Asset Management and U.S.-based Blackstone and KKR, covers 13 crude oil pipelines spanning approximately 200 miles across the country.

Under the lease-and-leaseback arrangement, the investors and KPC subsidiary Kuwait Oil Company (KOC) will form a joint venture. This entity will lease usage rights for the pipelines for 20.5 years, paying KOC a tariff based on the volume of oil transported. KOC will retain a 51% ownership stake and full operational control of the infrastructure, with the consortium holding the remaining 49%. The transaction is expected to generate $7.85 billion in upfront proceeds for KOC upon closing, funds earmarked for capital expenditures aimed at boosting crude oil production and supporting economic diversification.

Officials described the investment as a significant vote of confidence amid ongoing regional tensions, including attacks on Kuwaiti infrastructure...