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By Hadeel Al-Sayegh

February 24 (Reuters) - Kuwait Petroleum Corporation is in early-stage talks with a large group of potential investors about selling a $7 billion stake in its crude oil pipelines, three sources familiar with the matter said, following similar moves by Saudi Arabia and the United Arab Emirates.

Sources indicated that among the investors who expressed interest in the deal were BlackRock, Brookfield Asset Management, IIG Partners, and KKR Group. Interest also emerged from China's Silk Road Fund and China Merchant's Capital, in addition to I Squared Capital and Macquarie Infrastructure Partners.

The three sources said the deal's structure is based on approximately $1.5 billion in equity, with the remainder financed through debt.

Sheikh Nawaf Saud Al-Sabah, Vice Chairman and Chief Executive Officer of the Kuwait Petroleum Corporation, heads a steering committee that oversees the process, which sources described as being managed with careful and practical supervision, with the committee meeting every few weeks to monitor progress.

Sheikh Nawaf told reporters in September, "We are currently studying the possibility of leasing and subleasing our (oil) pipelines in Kuwait." He stated that these pipelines are assets owned by the corporation and do not generate direct financial returns, adding, "If there is an opportunity to find additional funding through these assets... then welcome, and all the best."

BlackRock, Brookfield, Macquarie, KKR, EIG and Isquared declined to comment, while the Foundation, China's Silk Road Fund and China Merchants Capital did not respond to requests for comment.

Two sources said the institution is currently in talks with other banks to join HSBC in guaranteeing the debt portion of the deal.

Two of the sources said the sale of the oil pipeline network stake could officially begin by the end of this month, which is in line with what Reuters reported last month.

The agreement, which sources say is for 25 years, faces complex circumstances. One source said that crude oil trading at around $71 a barrel is putting pressure on expected volumes and returns, while geopolitical tensions in the Gulf region further complicate the situation.

This is similar to deals struck in recent years by companies including Saudi Aramco, Abu Dhabi National Oil Company (ADNOC), and Bahrain's Bapco Energies, as they seek to raise cash through their pipeline infrastructure networks. Such deals provide upfront liquidity in exchange for fees paid over a period of time.

The Kuwait Petroleum Corporation said in late 2023 that it would spend $410 billion by 2040 on a strategy aimed at increasing production capacity to four million barrels per day.

The Kuwait News Agency reported in September that BlackRock would open an office in Kuwait and appointed Ali Al-Qadi to lead operations in the country. BlackRock signed a similar deal last year for processing facilities at Saudi Aramco's Jafurah gas project in Saudi Arabia.