Blackstone, Brookfield and KKR have signed a $16 billion deal with Kuwait Oil to enter a joint venture over the country's oil pipeline network, structured as a lease-and-leaseback arrangement running for 20.5 years.
Key facts
- Blackstone, Brookfield and KKR signed a $16 billion deal with Kuwait Oil.
- The arrangement is a joint venture over an oil pipeline network.
- It uses a lease-and-leaseback structure lasting 20.5 years.
- The deal includes a volume-based tariff.
Three of the world’s largest investment firms — Blackstone, Brookfield and KKR — have signed a $16 billion deal with Kuwait Oil, according to CNBC. The agreement centres on the country’s oil pipeline network.
Under the terms reported by CNBC, Kuwait Oil will enter a joint venture with the three global giants. The transaction is arranged through a lease-and-leaseback structure.
The lease-and-leaseback period runs for 20.5 years, according to the CNBC report. The arrangement also includes a volume-based tariff, meaning payments are tied to throughput.
The involvement of Blackstone, Brookfield and KKR brings together three major players in global infrastructure and private capital markets on a single transaction with a state oil producer.
CNBC reported the deal value at $16 billion, though further details on the specific assets and the split between the parties were not provided in the source material.
Why it matters
Large infrastructure deals between global private capital firms and state oil producers signal continued investor appetite for long-term energy assets. The $16 billion size and multi-decade term underscore how significant these arrangements can be for both the investors and the host country's finances.
Frequently asked questions
How long does the Kuwait oil pipeline deal last?
According to CNBC, the lease-and-leaseback structure runs for a 20.5-year period.
Which firms are involved in the deal?
Blackstone, Brookfield and KKR are entering a joint venture with Kuwait Oil, according to CNBC.
How is the deal structured?
CNBC reports it is a lease-and-leaseback arrangement that includes a volume-based tariff.