Lukoil agrees to sell most international assets to Carlyle

Russia's Lukoil said Jan. 29 that it has agreed to sell most of its international assets to US investment company Carlyle, after it earlier decided to exit projects abroad due to Western sanctions.

Lukoil said the deal is subject to regulatory approvals, including from the US Department of the Treasury, which previously sanctioned Lukoil in an effort to cut Russian revenues used to finance its war in Ukraine.

Carlyle confirmed the agreement in a statement Jan. 29, saying it is subject to Carlyle's due diligence and regulatory approvals and has been structured to be fully compliant with the US Treasury's policies.

The deal does not include Lukoil's assets in Kazakhstan, which will remain part of Lukoil and continue operating under their respective licenses, Lukoil said.

Kazakh Energy Minister Yerlan Akkenzhenov said Jan. 28 that the ministry has submitted a request to the US Treasury on a potential buyout of Lukoil's assets in Kazakhstan. Lukoil holds stakes in the Tengiz and Karachaganak oil projects, as well as the Caspian Pipeline Consortium — Kazakhstan's main crude export route.

Lukoil's other foreign assets include stakes in the Shah Deniz project in Azerbaijan and West Qurna-2 in Iraq. It also has exploration and production stakes in Uzbekistan, Egypt, Cameroon, Nigeria, Ghana, Mexico, the UAE, and Congo.

In the downstream sector, Lukoil has interests in three refineries with a combined capacity of almost 400,000 b/d — Bulgaria's Neftohim Burgas, Romania's Petrotel, and its Dutch facility, Zeeland.

Lukoil also operates a retail network of some 2,000 fuel stations across Central and Eastern Europe.

Carlyle said that if the deal is approved, it would focus on ensuring operational continuity, preserving jobs, stabilizing the asset base, and supporting safe, reliable performance across Lukoil's portfolio.

"As a responsible steward of these global assets, Carlyle recognizes their relevance and, in some cases, critical importance to nations' infrastructure and domestic energy security. Carlyle would also reinvest free cash flow into the asset base to support long-term performance," it said.

Carlyle holds over $20 billion of energy assets, including oil and gas, renewables, and infrastructure. It has stakes in Colombia's largest independent oil producer, SierraCol, and a new $2 billion strategic partnership with US producer Diversified Energy agreed in 2025. In the downstream sector, it has stakes in Spanish refiner Moeve and VaroPreem (formerly Varo Energy), which together operate across Spain, Sweden, Switzerland, and Germany.

Lukoil said the agreement with Carlyle is not exclusive and is continuing negotiations with other potential purchasers.

The US Treasury did not respond to a request for comment.

Several companies have expressed interest in acquiring Lukoil's foreign assets since Oct. 27, when it announced plans to sell them. This includes global commodities trader Gunvor, which withdrew an offer for Lukoil's international assets after the US Treasury said it would not grant a license for the deal.

The deadline for Lukoil to negotiate the sale of its international assets is Feb. 28.

Expected impact

Analysts with S&P Global Energy estimate that oil and gas output from Lukoil's assets abroad will grow through the end of the decade. They estimate Lukoil's share of production at projects abroad will rise by 119,000 barrels of oil-equivalent a day compared with 2025 levels to 448,000 boe/d by 2030.

Ronald P. Smith of Emerging Markets Oil & Gas Consulting Partners said the deal has minimal implications for oil production, but it may affect trade flows.

"The new owners will have different opportunity sets, and thus flows are likely to change, and trading and refining margins in a number of regions may be affected to some extent," Smith said.