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Rival suitors continue to chase Lukoil assets despite a deal with Carlyle, sources say, underscoring lingering uncertainty around the future of the Russian energy group’s international portfolio.
Several companies, including Chevron, are still competing for Lukoil’s global assets, even after the company struck a preliminary agreement last week with U.S. private equity firm Carlyle, according to four people familiar with the talks.
Lukoil is operating against a tight deadline. The company has until February 28 to complete a sale under terms set by the U.S. Treasury, which imposed sanctions on Lukoil and Rosneft last year as part of broader efforts to pressure Moscow into reaching a peace agreement with Ukraine.
Multiple Bidders Still in Play
Despite Carlyle’s agreement, discussions with rival bidders have not stopped. A partnership between Chevron and Texas-based Quantum Energy Partners, along with a separate consortium led by investment bank Xtellus Partners, remain engaged in talks with both Lukoil and U.S. authorities, two sources said.
“It’s definitely not a done deal yet,” said one source close to Lukoil. “Carlyle is only now beginning to dig deeper into the assets, and the winds could still shift on this transaction.”
Lukoil has confirmed it continues to negotiate with other potential buyers. Quantum declined to comment, while Chevron did not immediately respond to a request for comment.
Carlyle Seeks Partners as Approvals Loom
The asset package, once valued at around $22 billion, has drawn interest from a wide range of potential buyers, from Exxon Mobil to German investor Bernd Bergmair, a former owner of Pornhub. Some bids have already been rejected by the U.S. Treasury’s Office of Foreign Assets Control, including proposals from commodity trader Gunvor and Xtellus.
Carlyle agreed on January 29 to purchase Lukoil’s assets outside Kazakhstan. Since then, the firm has been holding talks with Abu Dhabi-based funds Mubadala, XRG and IHC, as well as the U.S. Development Finance Corporation, about joining the deal, according to sources.
However, the transaction still faces several regulatory hurdles. Approval from OFAC is required, and Lukoil would also need clearance from the Kremlin and Russia’s central bank before any sale can be finalized, people close to the process said.
Alternative Payment Plan Emerges
Meanwhile, Xtellus—formerly the U.S. arm of Russian bank VTB—is working with American billionaire Todd Boehly and the UAE’s Allied Investment Partners on a separate proposal. According to sources, the group has suggested paying for the assets using frozen Lukoil shares held by U.S. investors instead of cash.
That idea remains under discussion, with the consortium continuing conversations with U.S. officials as it seeks to push the proposal forward.
For now, the race for Lukoil’s global assets remains wide open, with competing bids, regulatory scrutiny and geopolitical considerations all shaping a deal that is far from settled.
