Saudi company eyes purchase of all Lukoil overseas assets

Saudi company Midad Energy is reportedly considering acquiring all overseas assets of the Russian oil giant Lukoil, according to sources cited by Reuters.

Sources said a letter of intent was signed in late January amid intense competition from rivals. Midad has agreed to buy Lukoil’s assets in cash and place the funds in a special escrow account pending approval from the U.S. Treasury to complete the transaction.

“Midad is working to secure necessary regulatory compliance. The bid is viewed as a high-stakes move supported by strong political connections with Saudi Arabia,” one source told Reuters.

The agency noted, however, that there is no guarantee Washington will approve the sale of Lukoil’s assets to the Saudi company. Neither Midad nor Lukoil commented on the agreement.

By Vugar Khalilov