Todd Boehly, an American billionaire, has partnered with US investment bank Xtellus Partners and United Arab Emirates' investor group Allied Investment Partners to bid for Lukoil's global assets. Xtellus Partners has proposed to the US Treasury that proceeds from the sale of Lukoil's foreign assets be used to repay American investors, including BlackRock, JP Morgan, and Goldman Sachs, who lost billions when their Lukoil stock holdings were frozen and written off after Russia's invasion of Ukraine.
Lukoil's international assets, valued at $22 billion, include oil fields, refineries, and petrol stations across various countries like Iraq, Azerbaijan, and Kazakhstan, as well as Europe and the United States. The US imposed sanctions on Lukoil in October to pressure Russia towards a peace deal with Ukraine, initially setting a deadline of January 17 for the sale of these assets. This deadline has been extended multiple times by the U.S. Office of Foreign Assets Control (OFAC), most recently to April 1.
Any deal for Lukoil's assets requires that the Russian company receives no upfront value, and all sale proceeds must be placed in a blocked account subject to US jurisdiction. Other frontrunners in the bidding process include private equity giant Carlyle, a partnership between Chevron and Quantum Capital Group, UAE-based International Holding Company, and Saudi Arabia's Midad Energy. Midad Energy has reportedly offered an all-cash deal with the money held in escrow. Multiple bidders, including Exxon Mobil, have shown interest in the $22 billion portfolio.
