Kuwait, July 25 (QNA) - Kuwait Petroleum Corporation (KPC) announced Saturday that its subsidiary, Kuwait Oil Company (KOC), has signed a USD 16 billion lease and leaseback agreement for its domestic crude oil export pipeline network (the Shaheen Project) with a consortium of leading global infrastructure and investment firms, led by investment funds managed by Blackstone, Brookfield, and KKR.
In a statement, KPC described the deal as the largest foreign direct investment in the country's history. Under the Shaheen Project, KOC, a KPC subsidiary, is establishing a joint venture with the three US investors under a 20.5-year lease and leaseback agreement with a tariff structure linked to flow volumes.
KPC's Vice Chairman and CEO, Sheikh Nawaf Saud Nasser Al-Sabah said: "This transaction sends a powerful signal that Kuwait continues to rise as an attractive destination for global capital, even amid a challenging regional environment."
Blackstone, Brookfield and KKR will collectively own a 49 percent stake in the joint venture, while Kuwait Oil Company will retain a 51 percent stake, in addition to national ownership and operational control of the network, which comprises 13 pipelines spanning approximately 320 kilometers.
KPC noted that the deal is expected to generate upfront cash proceeds of USD 7.85 billion upon completion, supporting the corporation's capital expenditure programmes. (QNA)