Russia’s Lukoil is disposing of its international assets following U.S. sanctions. The sale to Swiss trader Gunvor was rejected, prompting a rush for alternative buyers. U.S. Treasury has authorized discussions with potential buyers until December 13, though specific deals will require separate approval. U.S. oil giant Chevron is reportedly considering acquiring some of Lukoil’s overseas assets, while private equity firm Carlyle is also exploring possibilities.
Lukoil’s international assets are valued at approximately $22 billion, covering upstream oil and gas projects, refining, and over 2,000 filling stations in Europe, Central Asia, the Middle East, and the Americas. The company produces about 0.5 million barrels of oil per day globally outside Russia, approximately 0.5% of total global output, in countries like Iraq, Kazakhstan, and Azerbaijan.
In the Middle East, Lukoil’s principal foreign asset is a 75% stake in the West Qurna 2 oilfield in Iraq. The company has declared force majeure at this site following the Iraqi government’s suspension of cash and crude payments. There is interest from two Western firms and one Chinese company in acquiring Lukoil’s stake. Lukoil also retains a 60% interest in Iraq’s Block 10 development. In Egypt, Lukoil possesses a 50% stake in the WEEM and WEEM Extension oilfields and a 24% stake in the Meleiha concession.
In Central Asia, Lukoil has significant holdings, including a 13.5% stake in the Karachaganak and 5% in the Tengiz oil and gas projects. Additionally, it holds a 12.5% share in the Caspian Pipeline Consortium and operates the Shah Deniz gas field in Azerbaijan. In Uzbekistan, Lukoil oversees the South-West Gissar gas field and owns a 90% stake in the Kandym fields development.
In Africa, Lukoil has a 38% interest in Ghana’s Deepwater Tano Cape Three Points and stakes in various Nigerian and Mexican offshore blocks. Lukoil’s refining assets include Bulgaria’s largest refinery, Neftohim Burgas, where the government has enacted legal measures to seize and sell assets. In Romania, the company owns the Petrotel refinery, and in the Netherlands, it has a 45% stake in the Zeeland refinery.
Lukoil’s retail business includes Teboil in Finland, and petrol stations in the U.S., Romania, and Moldova, with U.S.-sanctioned transactions allowed until mid-December.
With information from Reuters
