Carlyle Group to Acquire Lukoil's International Assets Amid Sanctions

Carlyle Group to Acquire Majority of Lukoil's Foreign Holdings for $22 Billion

The Carlyle Group, a prominent U.S. private equity firm, has announced its agreement to purchase the majority of Russian oil giant Lukoil's foreign holdings, valued at a significant $22 billion.

Background and Motivations

The strategic move comes as a result of U.S. sanctions requiring Lukoil, Russia's second-largest oil company, to divest its international assets as negotiations to resolve the Ukraine conflict unfold.

Key Aspects of the Pending Transaction

• Estimated value: $22 billion
• Requires green light from U.S. sanction administrators
• Focus on maintaining operational continuity, job preservation, and asset stabilization across Lukoil's portfolio

Lukoil's Position and Prospective Buyers

Lukoil has confirmed that it's engaging with other prospective buyers for its assets spread across Europe, the Middle East, Africa, and Central Asia.

Notably, at least a dozen companies, including:

• Exxon Mobil
• Chevron
• Midad Energy (Saudi Arabia)

Holdings Retained by Lukoil

Lukoil will retain holdings in Kazakhstan, not included in the sale.

Complexity of Geopolitical and Regulatory Landscapes

The U.S. has blocked previous deals, emphasizing the complexity of the geopolitical and regulatory landscapes at play.