Saudi Arabia’s Midad Energy has become a key contender to acquire the international assets of Russian oil major Lukoil, three sources familiar with the discussions told Reuters. The portfolio, estimated at approximately $22 billion, comprises oil fields, refineries, and thousands of fuel retail stations across global markets.
Midad Energy is preparing an all-cash bid for the assets, with purchase funds to be placed in escrow until sanctions on Lukoil are lifted, the sources said. One source noted that the transaction could involve US companies, reflecting Midad’s close political relationships with both Moscow and Washington.
Around a dozen bidders have submitted offers for the portfolio, including US energy companies ExxonMobil and Chevron, as well as private equity firm Carlyle.
The US Treasury has set a deadline of January 17, 2025, for Lukoil to complete the sale of the assets. The US placed sanctions on Russia’s two largest oil producers, Lukoil and Rosneft, citing their involvement in funding Moscow’s war activities. The measures have severely affected Lukoil’s international operations, which represent approximately 0.5% of the global oil supply.
