Kuwait Petroleum Corporation (KPC) has signed a $16 billion deal to lease and lease back its crude oil pipeline network with a consortium comprising global funds Blackstone, Brookfield and KKR, the state-owned Gulf firm said on Saturday.<\/p>\n\n\n\n
It said it was the largest foreign direct investment in the country’s history.<\/p>\n\n\n\n
Under the investment called Project \u200cPeregrine, KPC’s \u200cunit Kuwait Oil Company (KOC) is establishing a joint venture \u200cwith the \u2060three global investors \u2060in a lease and leaseback structure for a 20.5-year period that includes a volume-based tariff, KPC said in a statement.<\/p>\n\n\n\n
“This transaction sends a powerful signal that Kuwait continues to rise as an attractive destination for global capital, even amid a challenging regional environment,” KPC Deputy Chairman and CEO Shaikh Nawaf Saud Al-Sabah said in the statement.<\/p>\n\n\n\n
Blackstone, Brookfield and KKR will collectively hold a 49% stake in the joint venture, while KPC will retain a 51% stake as well as full ownership and operational control of the network, which comprises 13 pipelines spanning a total of around 320 kilometers (199 miles).<\/p>\n\n\n\n
The transaction is expected to generate $7.85 billion in upfront proceeds at closing, KPC said, adding it will support the oil company’s capital expenditure plans.<\/p>\n\n\n\n
KPC\u2019s pipeline network transports crude oil and refined products across Kuwait, linking the country\u2019s oilfields to export terminals on the Arabian Gulf.<\/p>\n\n\n\n
Centerview Partners, HSBC and JP Morgan acted as financial advisors to KPC.<\/p>\n\n\n\n
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