US Treasury sets deadline: Saudi company among key bidders for Lukoil assets
18 December 15:51
The Saudi energy company Midad Energy has become one of the main contenders for the purchase of the international assets of the Russian oil giant Lukoil. This was reported by Reuters, according to "Komersant Ukrainian".
The sale is being considered against the backdrop of tough US sanctions and US Treasury Department deadlines that force the company to decide on the future of its assets abroad.
What happened
According to Reuters, Midad Energy has become one of the key bidders for the purchase of Lukoil’s foreign assets. These are packages estimated at about $22 billion, which include oil fields, refineries and thousands of gas stations in different countries.
In addition to the Saudi company, about a dozen potential buyers have shown interest in the assets, including American giants Chevron and Exxon.
“Lukoil has stepped up preparations for the sale
“Lukoil has stepped up preparations for the sale after the US imposed large-scale sanctions on the company in October. The restrictions were part of pressure on Russia to end its war against Ukraine.
According to Reuters, the U.S. Treasury Department requires Lukoil to make a decision on the sale of foreign assets by January 17. If the deal is approved, the buyer will have to transfer funds to a special account, which will only be accessible after the sanctions are lifted.
Close political ties of Midad Energy’s management
Reuters sources draw attention to the close political ties of Midad Energy’s management. The head of the company is the brother of an influential Saudi national security adviser who participated in peace talks between the US and Russia in Riyadh in February. Their father used to head the kingdom’s intelligence service.
This factor, according to the agency’s interlocutors, may play a role in the complicated process of approving the deal between the Middle Eastern company, the Russian seller and American regulators.
The sale of Lukoil’s foreign assets will be one of the largest corporate redistributions caused by sanctions against the Russian energy sector. Further developments will depend on the position of the US Treasury Department, the ability of the parties to agree on a settlement mechanism, and whether the company will be able to make a decision by the deadline.
