Russian oil giant Lukoil has reached an agreement in principle with U.S. investment firm The Carlyle Group for the sale of its international assets, the company announced, marking a potential major shift in the firm’s overseas operations.
The deal covers Lukoil International GmbH, a subsidiary that holds nearly all of the company’s assets outside Russia, including operations in Africa, Europe, the Middle East, Central Asia, and Latin America. Assets in Kazakhstan are explicitly excluded from the transaction, the company said.
Lukoil stressed that the arrangement with Carlyle is non-exclusive, allowing it to continue discussions with other potential buyers. The company did not disclose the transaction’s value or provide a timeline for completion, noting that the sale remains contingent on regulatory approvals, including clearance from the U.S. Office of Foreign Assets Control (OFAC).
Industry sources estimate Lukoil’s international portfolio is worth approximately US$22 billion, encompassing oil fields, refineries, service stations, and trading operations. The sale follows a previous attempt to divest foreign holdings through Swiss trading company Gunvor, which ultimately withdrew from the process due to OFAC-related conditions.
“At this stage, the agreement with Carlyle is preliminary and subject to all regulatory requirements,” a Lukoil spokesperson said. “Discussions with other interested parties are ongoing, and the company remains committed to ensuring a transparent and compliant transaction process.”
More Read
Reports indicate that at least ten other companies, in addition to Carlyle and the withdrawn Gunvor bid, have shown interest in Lukoil’s international assets. Among these are U.S. majors Chevron and ExxonMobil, as well as Gulf-based firms including Saudi Arabia’s Midad Energy and the UAE’s International Holding Company, highlighting the global attention the sale has attracted.
The move comes amid growing geopolitical and economic pressures on Russian firms operating abroad. Sanctions and regulatory hurdles have complicated asset management for Russian oil companies, prompting Lukoil and others to explore strategic divestments to safeguard operations and comply with international regulations.
Lukoil International GmbH manages the company’s foreign production, refining, and trading activities, making it a critical component of Lukoil’s overseas footprint. Analysts note that a successful sale could reshape energy markets in regions where Lukoil has long-standing operations, particularly in Africa, where the firm maintains stakes in multiple oil-producing countries.
The Carlyle Group, a global private equity and investment firm, has extensive experience in energy sector transactions and emerging markets, positioning it as a likely candidate to acquire and manage Lukoil’s assets efficiently. Analysts say the non-exclusive nature of the agreement signals that Lukoil may seek competitive offers to maximize value and secure regulatory compliance.
This announcement comes as part of Lukoil’s broader strategy to consolidate its domestic operations while reducing exposure to complex geopolitical and regulatory risks abroad. The company has emphasized that it remains committed to growth in Russia, even as it explores opportunities to divest foreign assets.
The potential transaction will require approvals from multiple jurisdictions, including national regulators in the countries where the assets are located, as well as OFAC due to U.S. investment involvement. Delays or refusals could affect the final terms and timing of the sale, making regulatory clearance a crucial factor in determining the outcome.
Lukoil, Russia’s second-largest oil producer after Rosneft, reported significant international revenues in recent years, with foreign operations contributing an estimated 20–25 percent of total output. The sale of these overseas holdings, if completed, would represent a significant restructuring of the company’s global portfolio.
As negotiations continue, market watchers will be monitoring both regulatory developments and interest from other global energy firms. The outcome of this preliminary agreement could have far-reaching implications for global oil markets, foreign investment in Russian energy assets, and the operational landscape for international oil companies in Africa and beyond.
