Reuters: US company sets sights on Lukoil’s overseas assets

U.S. private equity firm Carlyle is reportedly exploring options to acquire Russian oil major Lukoil’s foreign assets, according to sources familiar with the situation. The potential deal comes amid escalating U.S. sanctions targeting the company as part of efforts to pressure Moscow over the Ukraine conflict.

Lukoil, which produces roughly 2% of global oil output both domestically and abroad, has been seeking buyers for its international holdings, which account for 0.5% of global oil production and are estimated to be worth around $22 billion, based on 2024 filings.

The U.S. recently blocked Lukoil’s attempt to sell these assets to Swiss-based trader Gunvor ahead of a November 21 sanctions deadline, calling Gunvor a Kremlin “puppet.” Sources told Reuters that Carlyle is considered “better suited” to obtain U.S. approval for such a transaction.

Carlyle is in the early stages of exploring a purchase and intends to apply for a U.S. licence before commencing due diligence. However, sources caution that the firm could still decide against moving forward. Carlyle and Lukoil have not commented publicly on the matter.

Experts note that while the deal could represent a bargain opportunity, time constraints imposed by the sanctions could complicate valuation efforts. “The opportunity set here is that Carlyle can get a bargain, but can they get the time to properly assess the value of the assets?” said Dan Pickering, chief investment officer at Pickering Energy Partners.

The potential transaction is further complicated by efforts from some countries to nationalise certain Lukoil assets, according to Aditya Ravi, head of upstream research at Rystad Energy.

Lukoil has been one of Russia’s most active oil majors abroad, operating three refineries in Europe, stakes in oilfields across Kazakhstan, Uzbekistan, Iraq, Mexico, Ghana, Egypt, and Nigeria, and hundreds of retail fuel stations worldwide, including in the United States. Recent U.S. sanctions have already disrupted Lukoil’s operations in Iraq, Finland, and Bulgaria.

Carlyle, one of the world’s largest private equity and alternative asset management firms, currently manages $474 billion in assets globally.

By Vugar Khalilov