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Carlyle Strikes Conditional Deal for Lukoil’s International Assets, Excluding Kazakhstan

OFAC’s pending review under a temporary sanctions license will determine whether the transaction can close.

Overview

  • Carlyle and Lukoil announced a non‑exclusive agreement to transfer most overseas assets, with the sale explicitly leaving out Lukoil’s holdings in Kazakhstan.
  • U.S. Treasury rules require OFAC approval, and a general license allows divestment only through Feb. 28, with any sale proceeds held in a U.S.-jurisdiction account and frozen until sanctions are lifted.
  • Carlyle has begun exploratory talks with potential UAE partners, including Mubadala, XRG and IHC, to join the portfolio if the deal proceeds, sources told Reuters.
  • Kazakhstan’s Energy Ministry said it has asked OFAC to authorize its pre‑emption rights to buy Lukoil’s Kazakh stakes, which are not part of the Carlyle agreement.
  • The portfolio spans upstream assets such as Iraqi oilfields and refineries in Bulgaria and Romania, and Carlyle says its approach focuses on operational continuity and preserving jobs.