Russia’s Lukoil, the second-largest oil producer in the country, has recently entered into a tentative agreement with U.S. private equity firm Carlyle Group to sell off the majority of its international assets. This move comes as Western sanctions continue to put pressure on Russian energy companies to divest their assets abroad.
Although the exact value of the deal has not been disclosed, it includes Lukoil’s oil and gas fields spanning from Iraq to Mexico, as well as thousands of petrol stations in 20 countries and refineries in Bulgaria and Romania. However, Lukoil’s interests in Kazakhstan will not be part of the agreement. The company had previously valued its entire international business at $22 billion.
The decision to sell off these assets comes in response to U.S. sanctions imposed on Lukoil and Rosneft in October 2025, following the ongoing conflict in Ukraine. As a result, Kazakhstan has separately submitted a bid to U.S. authorities to acquire Russian oil producers’ stakes in the country’s energy projects.
While Lukoil’s agreement with Carlyle is conditional and not exclusive, the company is also in negotiations with other potential buyers, including Chevron Corporation and Quantum Capital Group, who are preparing a joint bid. ExxonMobil and Abu Dhabi’s International Holding Company have also expressed interest in acquiring Lukoil’s international portfolio.
The negotiations were made possible in November when the U.S. Treasury Department authorized potential buyers to engage with Lukoil for the purchase of its foreign assets, which account for about 0.5% of global oil production. Despite the asset sale, analysts predict that Lukoil’s oil and gas output from its overseas operations is expected to continue rising through the end of the decade, according to S&P Global.
Overall, this agreement marks a significant shift in the global energy landscape, as Russian energy companies are forced to reevaluate their international investments in response to ongoing geopolitical tensions and economic sanctions. As the negotiations progress, it will be interesting to see how the sale of Lukoil’s international assets will impact the company’s future growth and strategic direction in the energy sector.
