In the largest foreign investment in its history.. Kuwait concludes a $16 billion agreement with a global alliance in the energy sector
KUWAIT, 25 July / WAM / Kuwait Petroleum Corporation announced the signing of the largest foreign direct investment in the country’s history, valued at $16 billion, through the conclusion of the “Shaheen Project” agreement by its subsidiary, the “Shaheen Project”, to lease and re-lease the pipeline network designated for the export of crude oil, with a global alliance led by investment funds managed by the companies “Blackstone”, “Brookfield” and “KKR”.
The corporation expects this deal to generate upfront cash returns amounting to $7.85 billion, to support plans to raise crude oil production capacity to 4 million barrels per day by 2035.
Under the agreement, a partnership company will be established in which “Kuwait Oil” owns a majority of 51%, compared to 49% for the investment alliance, to lease the rights to use 13 pipelines with a length of 320 kilometers, while granting “Kuwait Oil” the right to exclusive use, operation and maintenance for a period of 20.5 years in exchange for a tariff linked to the volume of flows, with full ownership and operational and production control remaining in the hands of the State of Kuwait.
Sheikh Nawaf Saud Nasser Al-Sabah, Vice Chairman and CEO of the Kuwait Petroleum Corporation, confirmed that the project represents a turning point in the economic development process, and reflects the commitment to attract elite global investors to develop infrastructure while preserving national ownership, stressing that the deal confirms Kuwait’s investment attractiveness and the flexibility of its economy despite regional challenges.
Centerview Partners, HSBC, and JP Morgan provided financial advice to Kuwait Petroleum Corporation in this deal, which is subject to meeting official requirements and approvals in the country.
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