Latest news indicates that the US energy sector... giant Chevron They are joining forces with private equity firm Quantum Capital Group to bid for the overseas assets of Russia's Lukoil.
Last October, in an effort to pressure for a ceasefire between Russia and Ukraine, the U.S. Treasury Department announced sanctions against Lukoil and Rosneft. The U.S. government also stated that some transactions involving the sale of overseas assets of the two companies could continue after the sanctions took effect.
Lukoil's overseas portfolio includes oil and gas. With its production operations, refining facilities, and more than 2,000 gas stations across Europe and Asia, Lukoil values these assets at approximately $22 billion.
The bidding process was led by Quantum, and sources familiar with the matter revealed that if the deal goes through, Chevron and Quantum plan to allocate the assets between themselves and commit to holding and operating them for the long term—a commitment that is likely to win the support of the Trump administration.
Sources familiar with the matter said that Quantum had already contacted Trump administration officials about its bid, stating that its proposal would ensure strategic importance to the U.S. energy industry. A senior U.S. government official also welcomed the joint proposal from Quantum and Chevron .
A Chevron spokesperson responded that the company has a diversified asset portfolio and will continue to evaluate potential opportunities. "In accordance with company policy, we do not comment on third-party statements or business matters."
The U.S. Treasury Department has granted Lukoil an exemption period until January 17 for negotiations to sell its overseas assets, but the proceeds from the sale must be deposited into a third-party escrow account that Lukoil cannot access during the sanctions period.
In addition, any transaction requires approval from U.S. regulators, which effectively gives Trump a veto.
It's worth noting that Chevron and Quantum were not among the first bidders. Prior to this, another major US private equity firm, Carlyle Group, also participated. Abu Dhabi International Holdings (IHC) and other companies have also submitted acquisition applications.
Lukoil had previously agreed to sell its overseas assets to Swiss oil trading company Gunvor, but the U.S. government blocked the deal, with the U.S. Treasury Department referring to Gunvor as a "Kremlin puppet" on social media.
(Article source: CLS)
