The joint venture secures a 49% stake in Kuwait’s crude pipeline network, marking the country’s largest foreign direct investment.
Blackstone Inc. (BX), KKR & Co. Inc. (KKR), and Brookfield finalized a $16 billion joint venture to acquire a 49% stake in Kuwait’s domestic and export crude pipeline network. The 20.5-year lease agreement provides volume-based tariff payments, ensuring stable cash flows regardless of oil price volatility.
The deal delivers $7.85 billion in upfront proceeds to Kuwait Petroleum Corporation, supporting its goal to increase oil production capacity to four million barrels per day by 2035. Kuwait Oil Company retains 51% ownership and operational control over the 320-kilometer pipeline network.
Blackstone’s Q2 2026 earnings highlighted the deal’s alignment with its infrastructure strategy, as assets under management reached $1.35 trillion, up 11% year-over-year, while distributable earnings rose 26% to $1.98 billion.