Lukoil is trying to quickly alienate all its assets outside of Russia before American sanctions fully come into effect, according to sources cited by Bloomberg. The company wants a single transaction for the entire portfolio, but this approach complicates negotiations, as potential buyers are only interested in certain parts of the business.
Bloomberg notes that a discussed solution could be a two-step process: a buyer — possibly a financial company — to take over the entire package, with the assets to be subsequently resold separately to investors interested in certain areas or projects.
Among the companies analyzing individual assets are Exxon and Chevron, particularly interested in Lukoil’s stake in the West Qurna-2 field in Iraq, the sources said. Another potential buyer is the Abu Dhabi National Oil Company (ADNOC), which would examine several options, but its attention is focused on Lukoil’s gas operations in Uzbekistan.
Lukoil’s decision to urgently seek a buyer came after the United States imposed sanctions on the company at the end of October. Initially, Lukoil had reached an agreement with trader Gunvor — a company founded by Torbjörn Törnqvist and businessman Ghenadi Timcenko, close to President Vladimir Putin. However, the transaction was blocked: the US Treasury Department stated that Gunvor “will never obtain a license to operate or to generate profit”, and the company withdrew the offer.
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