Exxon Mobil Corp., Chevron Corp., Abu Dhabi National Oil Co. as well as US private equity giant Carlyle Group are among companies interested in Lukoil PJSC’s international assets, a sale hastened by US sanctions due to kick in next month.
Suitors are lining up to look at the various parts of Russian energy giant’s sprawling international business, with some potential buyers only interested in specific assets, according to people familiar with the situation. But one potential problem is that Lukoil favors selling the assets as a single package ahead of sanctions due to take effect Dec. 13, one of the people said.
This raises the possibility of a two-step process in which one buyer – such as a financial firm – acquires all of Lukoil’s non-Russian assets and then resells them piecemeal over time.
A key detail in the process is that the Trump administration would prefer that Lukoil’s global assets are taken over by a US entity, a fact that may limit the pool of potential buyers, people with knowledge of the matter said. A spokesperson for the US Treasury didn’t immediately respond to a request for comment.
Lukoil had previously agreed to sell the whole international business to Gunvor Group – a deal that was then dramatically blocked by the US.
Exxon and Chevron are exploring Lukoil’s stake in the West Qurna 2 field in Iraq, said two of the people, who declined to be identified because the talks are private.
Meanwhile Adnoc is looking at various Lukoil assets, with the Russian firm’s natural gas operations in Uzbekistan potentially of most interest, according to people with knowledge of the situation.
Spokespeople for Chevron, Exxon, Carlyle and Adnoc’s international investment unit XRG all declined to comment. Lukoil didn’t respond to a request to do so.
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