Midad Energy Moves to Buy Sanctioned Lukoil Assets

Saudi-backed Midad Energy has signed a term sheet to acquire Russia’s Lukoil assets affected by Western sanctions, competing with rivals including private equity firm Carlyle Group. The agreement, reached in late January, covers all targeted assets and is conditional on approval from U.S. regulators, Reuters reports.

Under the deal, Midad will place its all-cash offer in escrow while seeking the necessary clearances, including from the U.S. Treasury. This approach aims to secure the transaction while adhering to sanctions restrictions. A source close to the negotiations described the bid as «high-stakes» and backed by strong political connections in Saudi Arabia.

The move reflects Lukoil’s ongoing efforts to divest foreign holdings constrained by sanctions, as well as growing Middle Eastern interest in discounted oil and refining assets. Recent U.S. temporary licence extensions for sanctioned Russian energy operations have allowed for maintenance, wind-down activities and potential sales under strict conditions, but any final transfer requires explicit U.S. approval.

The deal takes place amid the ongoing Ukraine-Russia conflict, which adds further uncertainty to the regulatory and geopolitical landscape. Lukoil’s international portfolio includes oilfields, refineries and thousands of fuel stations, attracting interest from global investors seeking access to discounted energy assets.

Kursiv also reports that Uzbekistan’s Minister of Energy, Jurabek Mirzamahmudov, told deputies in the lower chamber of parliament that Tashkent is engaged in discussions with Washington regarding the assets of Russian oil company Lukoil in Uzbekistan.

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