Washington extended the timeframe granted to Russia’s sanctioned energy major Lukoil to arrange sales of its international holdings, setting the new cutoff at February 28, giving the company additional time to negotiate the divestment of a large portion of its international portfolio across Europe, the Middle East, Africa, and Latin America, according to Reuters.

The deadline was originally set on January 17. The US placed sanctions on Russia’s two largest oil producers, Lukoil and Rosneft, citing their involvement in funding Moscow’s war activities.

Lukoil’s overseas portfolio is estimated at around $22 billion, spanning upstream oilfields, refining assets, and downstream retail fuel networks. Currently, potential bidders include private equity firm Carlyle, a consortium involving Chevron and Quantum Capital Group, and UAE-based International Holding Company. Other parties expressing interest include Exxon Mobil, Hungary’s MOL, and Saudi Arabia’s Midad Energy.

Lukoil’s largest overseas upstream assets lie in the Middle East, where it holds a 75% stake in Iraq’s West Qurna-2 oilfield, one of the world’s largest producing fields. While production has remained broadly stable at around 465,000–480,000 barrels per day (bbl/d), Iraq has approved plans for the state-run Basra Oil Company to temporarily assume operations to mitigate potential disruptions following payment suspensions to the Russian operator. The company also owns 60% of Iraq’s Block 10 development, which includes the Eridu field west of Basra.

In Egypt, Lukoil owns 50% of the West Esh El Mallaha (WEEM) concession in partnership with Tharwa Petroleum and holds a 24% stake in the Meleiha concession, operated by Italy’s Eni. In the UAE, the company maintains a 10% interest in the Ghasha sour gas concession, a major ADNOC-operated development.

Across Central Asia, Lukoil holds minority interests in several projects, including 13.5% in Karachaganak, 5% in Tengiz, and 12.5% in the Caspian Pipeline Consortium (CPC), which exports crude from Kazakhstan to the Black Sea. Lukoil doesn’t have to sell these assets as the US Treasury has allowed transactions.

The company also owns nearly 20% of the Shah Deniz gas field in Azerbaijan, operates the South-West Gissar gas field in Uzbekistan, and controls 90% of the Kandym gas fields development near the Turkmen border.

In Africa and Latin America, Lukoil holds a 38% stake in Ghana’s Deepwater Tano Cape Three Points block, a 25% interest in Congo’s Marine XII gas block operated by Eni, and an 18% stake in Nigeria’s Chevron-operated OML 140 exploration block. In Mexico, it partners with Eni in several offshore blocks and owns 50% of the Amatitlan block.

On the downstream side, Lukoil owns the 190,000 bbl/d Neftohim Burgas refinery in Bulgaria, the largest in the Balkans. US Treasury have permitted transactions involving the Bulgarian refinery until April 29, 2026. The company also owns refineries in Romania, Netherlands.

In its retail business, the company received an extension from the US Treasury for transitions of gas stations outside Russia to April 29 this year.  However, Romania approved on December 2 legal amendments enabling it to take control of Lukoil’s local assets, including more than 300 gas stations.