India, July 25 -- Kuwait Petroleum Corporation or KPC announced that its wholly owned subsidiary, Kuwait Oil Company or KOC, has signed a US$16.0 billion lease-and-lease-back agreement covering its entire domestic and export pipeline network. The deal was reached with a consortium of international infrastructure and institutional investors led collectively by Blackstone, Brookfield and KKR.
As part of the transaction, a newly formed Kuwaiti-incorporated joint venture will lease from KOC the usage rights to all 13 pipelines, spanning about 320 kilometers of Kuwait's network. Under the agreement, the JV will grant back to KOC exclusive use, operational and maintenance rights for a 20.5-year period, in exchange for a volume-based tariff.
KOC...