Kuwait is moving forward with the largest foreign investment in its history despite security threats in the region. Kuwait Petroleum Corporation announced the $16 billion Shaheen project, marking a major step in the oil sector infrastructure.
In a statement, the corporation said the project is Kuwait's largest foreign direct investment and the biggest partnership in its oil infrastructure. The agreement is based on a 20.5-year lease and leaseback model for a pipeline network used for crude oil exports. Kuwait Oil Company will retain a 51 percent stake, maintaining management and operational control.
It was stressed that the project imposes no restrictions on production or refining levels, and all operational and production decisions will remain entirely with the Kuwaiti state. Upon completion, the project is expected to generate $7.85 billion in cash returns.
Global investment firms Blackstone, Brookfield and KKR will participate in the project as long-term strategic partners. The revenue generated is expected to support the capital expenditure programs of Kuwait Petroleum Corporation, particularly the target of raising crude oil production capacity to 4 million barrels per day by 2035.
Kuwait Petroleum Corporation's top executive, Nawaf Saud Al-Sabah, said the project marks a turning point in economic development. Al-Sabah said the step reflects the resilience of Kuwait's economy and its vision in the energy sector, showing that the country continues to be a magnet for global capital despite current regional challenges.
The announcement comes at a time of escalating tensions in the region. In recent weeks, critical facilities and camps in Kuwait have been targeted by drone attacks. On Friday, it was announced that an attack was launched with missiles and drones fired by Iran, and that Kuwait's military repelled the attack with its air defense systems.
Iran claimed the attacks targeted American military bases in Kuwait, Qatar, Bahrain and Oman in retaliation for U.S. operations against it. These developments followed U.S. President Donald Trump's announcement on July 8 that the ceasefire had ended.
