Saudi Arabia’s Midad Energy has emerged as one of the leading contenders to buy Russian oil major Lukoil’s international assets, a deal that could reshape ownership of roughly $22 billion worth of oilfields, refineries, and fuel stations as U.S. sanctions force Moscow-linked firms to unwind overseas holdings, according to people familiar with the matter.
Lukoil is seeking to sell its foreign operations after sweeping U.S. sanctions imposed in October sharply restricted its ability to operate and finance assets outside Russia. The portfolio spans dozens of countries and includes upstream, refining, and retail operations. About a dozen bidders are reportedly competing for the assets.
Midad Energy is offering an all-cash deal, with funds to be held in escrow until U.S. sanctions on Lukoil are lifted, the sources said. The Saudi firm is competing against U.S. oil majors Exxon Mobil and Chevron, as well as private equity firm Carlyle. One source said the transaction could involve U.S. companies as partners.
The bid faces heavy scrutiny. The U.S. Treasury has already blocked two proposed offers for Lukoil assets, rejecting bids from commodity trader Gunvor and U.S.-based Xtellus Partners. Under the current sanctions regime, U.S. persons are barred from dealing with Lukoil, U.S.-based assets are frozen, and access to financing is restricted. Lukoil has until January 17 to complete a sale under the latest Treasury deadline.
Midad’s bid is drawing attention in part because of its political connections. The company’s CEO, Abdulelah Al-Aiban, is the brother of Saudi national security adviser Musaed Al-Aiban, a senior figure who participated in U.S.-Russia talks hosted in Saudi Arabia earlier this year. Their father, Mohamed Al-Aiban, was Saudi Arabia’s first intelligence chief.
The bid also comes amid deepening U.S.-Saudi ties under President Donald Trump. In 2025, Washington and Riyadh signed a series of agreements spanning defense, energy, and technology, with Saudi Arabia pledging up to $1 trillion in investment.
Midad Energy, part of Al Fozan Holding, has been expanding aggressively, including a $5.4 billion deal with Algeria signed in October.
By Julianne Geiger for Oilprice.com
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