Kuwait Petroleum Corporation (KPC) announced Saturday that its subsidiary Kuwait Oil Company (KOC) has signed a 16 billion-US-dollar agreement with a consortium of global investors to develop the country's crude pipeline infrastructure.
According to KPC, the transaction, known as Project Peregrine, represents the largest foreign direct investment in Kuwait's history.
The agreement will establish a Kuwait-based joint venture involving investment funds managed by Blackstone, Brookfield and KKR. KOC will retain a 51 percent majority stake, while the consortium will collectively hold the remaining 49 percent.
The agreement grants the joint venture usage rights to KOC's network of 13 oil export pipelines, spanning a total of some 320 kilometers. KOC will continue to own, operate and maintain the assets under a 20.5-year lease-and-leaseback arrangement, with all production and refining decisions under the control of the Kuwaiti state.
KPC said the transaction is expected to generate upfront proceeds of 7.85 billion dollars upon closing, helping finance its investment plans.
Sheikh Nawaf Saud Al-Sabah, KPC deputy chairman and chief executive officer, described the project as "a defining milestone" in Kuwait's economic development, saying it fulfills the government's commitment to attracting leading international investors while "preserving full national ownership and operational control" of strategic assets.
He said the agreement also sends "a powerful signal" that Kuwait remains an attractive destination for international capital despite regional challenges.
Executives from the three investment firms also welcomed the partnership.
According to KPC, the agreement remains subject to regulatory approvals and other customary legal requirements.
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