Russia’s Lukoil plans to sell its global assets, including major oil fields and refineries, following new US and British sanctions.
MOSCOW: Russia’s second-largest oil producer Lukoil announced it will sell its international assets following new Western sanctions over Ukraine.
This planned sale represents the most significant action yet by any Russian company in response to Western sanctions imposed over Russia’s war in Ukraine.
Lukoil stated the asset sales will proceed under an OFAC wind down license to ensure uninterrupted operations during the transition period.
The company confirmed it has already begun considering bids from potential purchasers for its international portfolio.
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United States President Donald Trump imposed Ukraine-related sanctions targeting Lukoil and Rosneft on October 22.
Britain similarly sanctioned Lukoil and Rosneft along with 44 shadow fleet tankers on October 15 to tighten energy restrictions.
Headquartered in Moscow, Lukoil accounts for approximately 2% of global oil production.
The company name originates from three western Siberian oil towns: Langepas, Urai and Kogalym.
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Lukoil did not specify which particular assets will be included in the sale.
Its most significant foreign holding is a 75% stake in Iraq’s massive West Qurna 2 oil field.
West Qurna 2 produced over 480,000 barrels per day in April according to Russian news agency Interfax.
The company owns Bulgaria’s 190,000 barrel per day Lukoil Neftohim Burgas refinery, the largest in the Balkans.
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Lukoil also operates the Petrotel oil refinery in Romania through its international assets.
The Russian company supplies oil to Hungary, Slovakia, and Turkey’s STAR refinery owned by Azerbaijan’s SOCAR.
Lukoil maintains additional stakes in European oil terminals and retail fuel chains beyond its refinery operations.
The company has various upstream and downstream projects across Central Asia, Africa, and Latin America. – Reuters
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