Carlyle is evaluating options to buy the foreign assets of Russian oil company Lukoil as the U.S. tightens sanctions linked to the war in Ukraine, according to three people familiar with the discussions. The potential deal would make Carlyle the first U.S. company to consider acquiring the portfolio, which produces about 0.5% of global oil output.
The U.S. imposed restrictions on Lukoil earlier this year to increase pressure on the Kremlin to join peace talks. Those measures halted Lukoil’s attempt to sell its overseas operations to Swiss commodities trader Gunvor ahead of a Nov. 21 sanctions deadline.
Early-stage assessment
One source said Carlyle is in the early stages of assessing a possible purchase and plans to apply for a U.S. licence that would allow the transaction to proceed. The person said Carlyle may still decide not to pursue the assets after reviewing initial conditions. Another source said Carlyle informed Lukoil of its interest in recent weeks.
Carlyle declined to comment, and Lukoil did not respond to a request for comment.
Gunvor dropped its bid after the U.S. Treasury signaled it would block the deal and described the trader as too close to Moscow. The decision removed the most advanced buyer from the process and increased uncertainty for Lukoil as it seeks to divest its international holdings under sanctions pressure.
Regulatory hurdles ahead
Analysts said Carlyle may have a better chance of securing U.S. approval than other potential buyers. “Carlyle is better suited to get U.S. approval,” Adi Imsirovic, director of Surrey Clean Energy and a former trading executive at Gazprom’s commercial arm, said.
Lukoil has requested an extension to the Nov. 21 deadline, which would allow more time for negotiations. Without an extension, any new deal would be prohibited under current rules.
Dan Pickering, chief investment officer at Pickering Energy Partners, said the timeline poses challenges. “The opportunity is that Carlyle can get a bargain, but can they get the time to properly assess the value of the assets?” he said.
Aditya Ravi, head of upstream research at Rystad Energy, said some countries’ efforts to nationalize energy holdings add complexity to any sale of Lukoil’s global portfolio.
Lukoil’s global footprint
Lukoil extracts about 2% of global oil output across its Russian and international operations. The company has been one of Russia’s most outward-focused oil producers for decades, with Lukoil assets designed to extend its presence in key regions.
Its overseas portfolio includes three European refineries, stakes in oilfields across Kazakhstan, Uzbekistan, Iraq, Mexico, Ghana, Egypt and Nigeria, and a network of retail fuel stations that once included locations in the United States. The Lukoil assets were valued at about $22 billion in Lukoil’s 2024 filings.
The latest U.S. sanctions have disrupted some of these operations, including projects in Iraq, Finland and Bulgaria, creating urgency for Lukoil asset to divest before restrictions tighten further.
Carlyle’s position
Carlyle, one of the world’s largest private equity and alternative asset managers, oversees $474 billion in assets. A successful bid would expand its presence in global energy markets at a time when geopolitical pressures are reshaping ownership of oil and gas assets.
Whether Carlyle proceeds will depend on securing regulatory clearance and completing due diligence under constrained timelines. The firm’s review continues as Lukoil seeks clarity on its sanctions extension request and weighs next steps for its multinational portfolio.
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