Lukoil’s agreement with Carlyle on foreign assets has lapsed — report
The sale of Lukoil International GmbH failed to secure necessary US regulatory approval, prompting the company to seek new buyers.
Quick Look
- Lukoil's agreement to sell its foreign asset holding entity, Lukoil International GmbH, to the Carlyle Group expired in July after failing to receive US regulatory approval.
- The company is now negotiating with other potential buyers for its international portfolio.
AI-generated summary
Why It Matters
Lukoil has been seeking to divest its international assets following the imposition of sanctions by the UK and the US. The company previously announced a deal with the Carlyle Group in January.
MOSCOW, October 8. /TASS/. Lukoil’s agreement with the US-based Carlyle Group regarding the sale of Lukoil International GmbH - the entity holding its foreign assets - expired at the end of July because it failed to secure approval from US authorities, according to a report by Lukoil International.
The company is continuing negotiations on the sale of its foreign assets with other potential buyers.
"Intensive negotiations are currently underway with other interested parties regarding the potential acquisition of the LIG group of companies," the report notes.
Subject to OFAC approval, Lukoil Mid-East - acting through Lukoil International Upstream Holding - would be able to transfer its 75% stake in the West Qurna-2 oil field in Iraq to Basra Oil Company in accordance with an agreement dated February 23, 2026. However, the company considers it impossible at this stage to assess which subsidiaries or projects within the LIG group might be acquired separately and which might be sold directly to other buyers.
According to the report, management anticipates the successful conclusion of negotiations and the transfer of the Lukoil International group to a new owner, while expecting the necessary licenses to be extended in the interim.
Following its inclusion on UK and US sanctions lists, Lukoil announced intentions to divest its international assets. In January, the company reported an agreement with Carlyle to sell Lukoil International GmbH. The deal, which excluded projects in Kazakhstan, was contingent on several conditions, including US regulatory clearance. At the time, Lukoil emphasized that the agreement was non-exclusive and that it was continuing talks with other potential buyers.
What to Watch
AI outlook — possibilities, not facts
Lukoil will continue negotiations with alternative buyers for the LIG group.
Very likely · Within months
Open Questions
- Who are the other interested parties currently in negotiations?
- Will the West Qurna-2 transfer proceed if OFAC approval is granted?
