The list of companies exploring the possibility of acquiring foreign assets of the Russian company Lukoil has expanded to include American Exxon Mobil and the UAE’s Abu Dhabi National Oil Company (ADNOC). Interest in Lukoil’s assets is growing amid the approaching date for the implementation of U.S. sanctions, which will take effect on December 13.
This is reported by Business • Media
Potential Buyers and Their Interests
According to reports, potential buyers are analyzing various aspects of Lukoil’s international business. Some are interested in acquiring specific assets; however, the company aims to sell all foreign entities as a single package before the sanctions come into effect. Accordingly, a likely scenario involves a financial structure purchasing the entire package of assets, followed by a gradual resale of them in parts.
The administration of U.S. President Donald Trump would prefer that Lukoil’s assets transition under the control of an American company, which may narrow the pool of contenders. Currently, Exxon Mobil and Chevron are considering investing in Lukoil’s stake in the Iraqi oil field West Qurna-2. Additionally, Exxon is interested in joint projects with Lukoil in Kazakhstan — the Karachaganak and Tengiz oil fields.
The Situation with Other Lukoil Assets
ADNOC, for its part, is examining various assets owned by Lukoil, with the greatest interest being in gas projects in Uzbekistan.
Amid preparations for sanctions, the Finnish gas station network Teboil, owned by Lukoil, is preparing to close 430 of its locations in Finland. Additionally, the Russian owners have agreed to sell their stake in the Serbian oil company NIS, in which the Russian Federation controls 56.15% of the shares, Serbia owns 29.87%, and the remainder belongs to minority shareholders.
Lukoil aims to sell its assets as a single package before U.S. sanctions take effect on December 13. This increases the likelihood of a two-step process, where one buyer, such as a financial firm, purchases all of Lukoil’s foreign assets and then gradually resells them in parts.