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Blackstone, KKR and Brookfield to invest in Kuwait crude pipelines
The $16 billion infrastructure venture is structured as a 20.5-year lease-and-lease-back deal, providing investors volume-based tariff payments.
Blackstone, KKR and Brookfield have signed Kuwait’s Project Peregrine, a $16 billion infrastructure joint venture aimed at buying a 49% minority stake in Kuwait’s total domestic and export crude pipeline network, according to Yahoo Finance. The deal represents the largest foreign direct investment in Kuwait’s history and covers 13 core pipelines spanning about 320 kilometers.
The agreement is set up as a 20.5-year lease-and-lease-back, with the three partners dividing the investment equally. Kuwait Oil Company is described as holding a controlling 51% equity stake and exclusive operational power, while the investor group receives volume-based tariff payments designed to support consistent cash flow.
For Kuwait Petroleum Corporation, the transaction is expected to unlock $7.85 billion in immediate upfront proceeds. Yahoo Finance said the funding is intended to help Kuwait pursue a plan to boost oil production capacity to four million barrels per day by 2035.
The timing of Project Peregrine also lines up with the firms’ recent earnings, per Yahoo Finance. Blackstone’s second-quarter 2026 results reported record assets under management of $1.35 trillion, up 11% year-over-year, and distributable earnings of $1.98 billion, up 26% year-over-year, while KKR reported adjusted net income growth of 40% year-over-year to $1.5 billion.
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