$16 Billion: Largest Foreign Direct Investment via the “Shahin” Project

The Kuwait Petroleum Corporation (KPC) announced that Kuwait Oil Company (KOC) has signed a lease and leaseback agreement for its entire domestic crude oil export pipeline network, valued at $16 billion, for the “Shahin Project,” with an alliance of leading global infrastructure investors and investment institutions, led by investment funds managed by Blackstone, Brookfield, and KKR.

In a press statement issued yesterday morning, the corporation said that under the agreement, a new joint venture company will be established in Kuwait to lease the usage rights of 13 pipelines spanning approximately 320 kilometers of KOC’s crude oil pipeline network. In return, the joint venture company will grant KOC exclusive usage, operation, and maintenance rights for these assets for a period of 20.5 years, against a tariff linked to oil flow volumes.

The statement noted that KOC and the investment alliance will establish the joint venture, with KOC retaining a majority stake of 51%, while the investment alliance will hold a 49% stake, distributed equally among participating parties under the same terms. Full ownership and operational control of the pipeline network will remain with KOC. The agreement will impose no restrictions on production or refining levels, as all operational and production decisions will remain entirely under Kuwaiti control. The deal is expected to generate upfront cash proceeds of $7.85 billion for KOC upon completion.

The “Shahin Project” represents the largest foreign direct investment in Kuwait’s history. On this occasion, Sheikh Nawaf Al-Saud, Vice Chairman and CEO of KPC, stated: “This deal sends a clear message reaffirming Kuwait’s continued standing as an attractive destination for global capital, even amid current regional challenges.”

For further details: “Kuwait Oil Company” signs lease and leaseback agreement for domestic crude oil export pipeline network; “Kuwait Petroleum Corporation” announces the largest foreign direct investment in Kuwait’s history, valued at $16 billion through the “Shahin Project.”

The Kuwait Petroleum Corporation (KPC) announced that Kuwait Oil Company (KOC) has signed a lease and leaseback agreement for its entire domestic crude oil export pipeline network with an alliance of major global infrastructure investors and investment institutions, led by investment funds managed by Blackstone, Brookfield, and KKR.

In a press statement issued yesterday morning, the corporation stated that under the agreement, a new joint venture company will be established in Kuwait to lease the usage rights of 13 pipelines spanning approximately 320 kilometers of KOC’s crude oil pipeline network. In return, the joint venture company will grant KOC exclusive usage, operation, and maintenance rights for these assets for a period of 20.5 years, against a tariff linked to oil flow volumes.

The statement noted that KOC and the investment alliance will establish the joint venture, with KOC retaining a majority stake of 51%, while the investment alliance will hold a 49% stake, distributed equally among participating parties under the same terms. Full ownership and operational control of the pipeline network will remain with KOC. The agreement imposes no restrictions on production or refining levels, as all operational and production decisions remain fully under the authority of the State of Kuwait.

The deal is expected to generate upfront cash proceeds of $7.85 billion for KOC upon completion, supporting KPC’s capital expenditure programs, primarily its plan to increase crude oil production capacity to 4 million barrels per day by 2035. It also supports Kuwait’s efforts to diversify funding sources and enhance the participation of global investors in the national economy.

The “Shahin” project represents the largest foreign direct investment in Kuwait’s history, reflecting the quality of KOC’s assets, the operational efficiency of KPC, and the attractiveness of Kuwait’s investment environment to global financial institutions. The agreement is among the first major foreign investments concluded in the Gulf region since the onset of recent regional challenges, underscoring Kuwait’s resilience and adaptability, and reflecting the continued confidence of global institutional investors in the State of Kuwait and KPC.

In addition to direct financial returns, the partnership aims to enhance the participation of global capital in the national economy, aligning with KPC’s development plans and Kuwait’s long-term vision for economic diversification.

On this occasion, Sheikh Nawaf Al-Saud, Vice Chairman and CEO of KPC, said: “The Shahin project is the largest foreign direct investment in Kuwait’s history and a pivotal milestone in the country’s economic development journey. It embodies the commitment announced by His Highness the Prime Minister, Sheikh Ahmad Al-Abdullah Al-Sabah, during the Kuwait Oil and Gas Exhibition in February 2026, aimed at attracting elite global investors to participate in developing the State of Kuwait’s strategic infrastructure, while fully preserving national ownership and operational control.”

He added: “We are pleased to welcome Blackstone, Brookfield, and KKR as long-term strategic partners in this historic deal, which reflects their confidence in the resilience of the Kuwaiti economy, the quality of KPC’s assets, and its long-term vision for developing the energy sector.”

He further stated: “This deal sends a clear message confirming Kuwait’s continued status as an attractive destination for global capital, even amid current regional challenges.”

Co-CEOs of KKR, Joe Bae and Scott Nuttall, said: “Kuwait has established itself as one of the world’s leading energy-producing countries thanks to decades of prudent investment and sound management. We are proud of our partnership with Sheikh Nawaf and his team. This investment reflects our confidence in Kuwait and our commitment to providing long-term capital to support strategic infrastructure. We look forward to expanding the scope of cooperation and exploring further joint investment opportunities in the coming years.”

For his part, Bruce Flatt, CEO of Brookfield, said: “Kuwait is a strategic and historic partner for Brookfield. We have long admired its success in building a world-leading energy sector. We are proud to support Kuwait in continuing to develop its vital energy infrastructure, and it is an honor to invest alongside our long-term partners.”

Stephen Schwarzman, Chairman, CEO, and Co-Founder of Blackstone, said: “Kuwait’s leadership, vision, and resources have made it an attractive destination for international capital, leveraging the strength of its energy sector and its outstanding efforts to diversify the economy. We are proud to support this vital infrastructure and contribute to meeting the growing global demand for energy, while strengthening our partnership with Kuwait, which spans nearly four decades.”

**Provisions of Kuwaiti Laws**

KPC stated in its announcement that the deal will be subject to the provisions of laws and regulations in force in Kuwait, and remains subject to fulfilling standard regulatory and legal requirements and obtaining necessary official approvals.

**Financial Advisor**

KPC clarified that the role of financial advisor for KOC in this transaction was undertaken by Centerview Partners, HSBC, and J.P. Morgan.