Russia's Lukoil Reaches Tentative Deal To Sell Most Overseas Assets To US Private Equity Firm Carlyle Amid Sanctions

Core Viewpoint - Lukoil, Russia's second-largest oil producer, has reached a tentative agreement to sell the majority of its international assets to Carlyle Group amid ongoing Western sanctions affecting Russian energy companies [1][2]. Group 1: Asset Sale Details - The potential deal includes Lukoil's oil and gas fields spanning from Iraq to Mexico, thousands of petrol stations in 20 countries, and refineries located in Bulgaria and Romania [2]. - The book value of Lukoil's entire international business is stated to be $22 billion, although the specific value of the current deal has not been disclosed [2]. - Lukoil's interests in Kazakhstan will not be included in the sale [2]. Group 2: Market Context and Competition - The asset sale follows U.S. sanctions imposed on Lukoil and Rosneft in October 2025 due to the conflict in Ukraine [3]. - Other companies, including Chevron Corporation and Quantum Capital Group, are reportedly preparing competing bids for Lukoil's international portfolio [4]. - ExxonMobil and Abu Dhabi's International Holding Company have also shown interest in acquiring Lukoil's assets [4]. Group 3: Regulatory Environment - The negotiations for the sale became feasible after the U.S. Treasury Department authorized potential buyers to engage with Lukoil for its foreign assets, which represent about 0.5% of global oil production [5]. - Analysts from S&P Global expect Lukoil's oil and gas output from overseas operations to continue rising through the end of the decade, despite the asset sale [6].