Kuwait Defies Regional Tensions with the Largest Oil Investment in Its History
Kuwait Petroleum Corporation announces the signing of the $16 billion “Shaheen” project to develop oil-sector infrastructure, alongside an allocation of $7.85 billion to raise production to 4 million barrels per day by 2035, while retaining full sovereignty and operational control.
Kuwait Petroleum Corporation announced on Saturday the completion of the largest foreign direct investment in the country’s history, valued at $16 billion, through the “Shaheen” project aimed at developing the infrastructure of Kuwait’s oil sector.
The announcement comes amid escalating regional tensions between the United States and Iran, and weeks after vital facilities and military sites in Kuwait were targeted by drone attacks as part of a broader wave of regional escalation.
In a statement, the corporation said the project represented the largest infrastructure partnership in the oil sector and the largest foreign direct investment in Kuwait’s history. It also embodies the commitment announced by Prime Minister Ahmad Abdullah Al-Ahmad Al-Sabah during the Kuwait Oil and Gas Exhibition in February 2026.
The corporation said the project is based on a 20.5-year, $16 billion sale-and-leaseback agreement covering Kuwait’s domestic pipeline network dedicated to crude oil exports. Kuwait Oil Company will retain a 51% stake and continue to manage and operate the project.
It stressed that the agreement imposes no restrictions on production or refining levels and that all operational and production decisions will remain fully under the authority of the State of Kuwait, while national ownership and Kuwait Oil Company’s operational control will be preserved.
The corporation said the expected cash proceeds upon completion of the transaction would amount to $7.85 billion, adding that Blackstone, Brookfield, and KKR would participate as long-term strategic partners.
The proceeds will support Kuwait Petroleum Corporation’s capital expenditure programs, foremost among them the plan to increase crude oil production capacity to 4 million barrels per day by 2035. They will also support Kuwait’s efforts to diversify its financing sources and strengthen the participation of global investors in the national economy.
The corporation noted that the “Shaheen” project aims to attract global investment to develop Kuwait’s oil infrastructure.
The statement quoted Nawaf Saud Al-Sabah, Chief Executive Officer and Vice Chairman of Kuwait Petroleum Corporation, as saying that the project represented “a pivotal milestone in the country’s economic development” and reflected “the resilience of the Kuwaiti economy, the quality of the corporation’s assets, and its long-term vision for developing the energy sector.”
He added that the deal sent “a clear message confirming Kuwait’s continued position as an attractive destination for global capital, despite the current regional challenges.”
The announcement comes amid a tense security situation in Kuwait. On Friday, the country was targeted by Iranian missile and drone attacks, while the Kuwaiti military said its air-defense systems had intercepted the attacks, describing them as “a heinous Iranian aggression.”
In recent days, Kuwait, along with several other Arab countries, has come under Iranian attack. Tehran said it had targeted “U.S. military bases and facilities” in Kuwait, Qatar, Bahrain, and Oman in retaliation for U.S. strikes against Iran, following U.S. President Donald Trump’s announcement on July 8 that the ceasefire had ended.
