Lukoil has agreed to divest its subsidiary Lukoil International to US private equity firm Carlyle.
The subsidiary manages Lukoil’s international assets, although assets located in Kazakhstan will remain under Lukoil’s ownership, continuing operations as per their current licences.
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According to a report by Reuters, Lukoil International, which is based in Vienna, holds equity valued at $22bn as per its 2024 financial statement.
The sale price of the transaction has not been made public by either Lukoil or Carlyle.
Additionally, Lukoil did not respond to inquiries seeking further details about the potential sale, reported Reuters.
The agreement with Carlyle is conditional and requires regulatory approvals including permission from the US Department of the Treasury’s Office of Foreign Assets Control (OFAC).
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By GlobalDataThe OFAC has said that any sale proceeds should be blocked and placed in an account subject to US jurisdiction until sanctions on Lukoil are lifted. It has also said that it wants to review any future onward sale of Lukoil’s international assets.
Despite this arrangement, Lukoil is still in discussions with other potential buyers.
The decision to sell Lukoil International comes as a response to restrictive measures imposed on the company and its subsidiaries by certain countries.
Lukoil International’s portfolio encompasses operations in regions such as Europe, the Middle East, Africa, central Asia and Mexico.
These assets include a majority interest in Iraq’s extensive West Qurna 2 oilfield, as well as refineries in Bulgaria and Romania.
Reports from various sources indicate that more than 12 parties have shown an interest in acquiring Lukoil.
Among these are US oil giants ExxonMobil and Chevron, Abu Dhabi-based conglomerate IHC and Midad Energy from Saudi Arabia.
Chevron has also engaged in discussions with Iraq regarding the purchase of the West Qurna 2 oilfield, in which Lukoil holds a 75% interest.
Concurrently, Kazakhstan announced that it had officially submitted a bid to US authorities for Lukoil’s stakes in its energy projects.
These projects include the Caspian Pipeline Consortium, a major route for Kazakh oil exports, and Tengiz, the country’s largest oilfield.
