Saudi Midad Energy signed a letter of intent to acquire LUKOIL’s international assets in late January, three sources familiar with the matter told Reuters, RBC reported.
According to them, the agreement covers all target assets. Midad has agreed to purchase the assets for cash and deposit the funds in a special escrow account pending receipt of regulatory approvals necessary to complete the deal, including from the U.S. Treasury Department.
„Midad is working to ensure compliance with the necessary regulatory requirements. The proposal is seen as a “high-stakes move backed by strong political ties to Saudi Arabia,” a source familiar with the deal told Reuters.
Any final deal to transfer the Russian company’s international assets would require approval from the U.S. Treasury Department. There is no guarantee that Washington will approve the sale, the sources said.
Midad and LUKOIL did not respond to Reuters’ requests for comment.
Reuters reported in mid-December that Midad was one of the leading bidders for LUKOIL’s foreign assets. On January 29, the Russian company announced a preliminary agreement to sell its foreign assets to U.S. investment fund Carlyle. Subsequently, according to Reuters, Carlyle has begun preliminary talks with investors from the UAE to attract partners if the deal goes through.
However, as the agency reported, Carlyle's competitors - Chevron, Quantum Energy Partners and investment bank Xtellus Partners - have also continued negotiations to purchase LUKOIL's foreign assets. The Russian company confirmed that it is in talks with potential buyers other than Carlyle.
LUKOIL decided to sell its foreign assets after the US imposed sanctions on the Russian company and its subsidiaries in October 2025. The US Treasury Department has twice extended the license authorizing transactions related to the sale of LUKOIL's assets, the last time until February 28.