$16bn Shaheen project seen as catalyst for foreign investment

26/07/2026

$16bn Shaheen project seen as catalyst for foreign investment

KUWAIT CITY, July 26: Oil expert and analyst Kamel Al-Harami revealed that the 13 pipelines included in the Shaheen project -- from the local production fields to the northern, southern and eastern parts of the country -- directly feed into the ports and marine export facilities. In a statement to the newspaper, Al-Harami wondered about the reasons behind the absence of the local private sector and its failure to participate in this major deal. He called on Kuwait Oil Company (KOC) to allocate 10 percent of its 51 percent stake to the private sector to ensure the circulation of local capital in the national oil wealth.

He believes that the $16 billion Shaheen deal will increase the volume of foreign capital invested in Kuwait from $2 billion to $18 billion. He said this increase will encourage foreign capital to enter the Kuwaiti market, whether in the oil sector or other economic sectors. He added that this deal will boost confidence in the State of Kuwait and the Kuwait Petroleum Corporation (KPC), while confirming the transformation of Kuwait into an attractive environment for foreign direct investment. He stressed that the involvement of three American companies in this deal is a clear proof of its success. He stated that the contract period for the project is 20 years and it is renewable.

Meanwhile, sources confirmed to the newspaper that the route of the vital Shaheen network, with a total length of around 320 kilometers, starts from the main gathering centers of KOC in the major fields, particularly the Burgan field in the southern and eastern areas, in addition to the northern fields. Sources indicated that the export terminal leads to platforms and ports along the Arabian Gulf, such as Mina Al-Ahmadi and Mina Abdullah, to supply international oil tankers and meet external demand. Regarding the overall benefit of the project and its strategic and economic importance, sources summarized the advantages into two main pillars.

The first pillar covers the operational and logistical benefits, which are represented in the comprehensive connection between the gathering centers in the northern, southern and eastern fields and the offshore export facilities. Sources also affirmed the role of the of the network in ensuring the continuity of exports, as pipelines are the safest means of transporting Kuwaiti crude oil and supplying oil to the tankers. Sources disclosed that the second pillar consists of the economic and investment benefits, as the project aims to attract liquidity to the Kuwaiti oil sector through foreign direct investment, without relinquishing ownership of assets.

By Najeh Bilal Al-Seyassah/Arab Times Staff