Midad Energy, a Saudi-based firm, has emerged as one of the leading contenders to acquire Lukoil’s international assets, valued at approximately $22 billion, according to sources familiar with the process.
The portfolio spans oilfields, refineries, and thousands of fuel stations worldwide, and has attracted interest from a broad field of bidders — including Exxon Mobil, Chevron, and private equity giant Carlyle.
🔹 Why This Deal Matters
- Lukoil is selling its overseas assets after U.S. sanctions imposed in October severely disrupted its global operations
- The transaction sits at the intersection of energy markets, geopolitics, and sanctions policy
- The U.S. Treasury has already blocked two potential bidders, underscoring the political sensitivity of the deal
🔹 Midad’s Strategic Edge
- Strong political ties spanning Riyadh, Washington, and Moscow
- Proposed all-cash structure, with funds held in escrow until sanctions are lifted
- Potential involvement of U.S. partners, according to sources
Midad Energy is part of Midad Holding, a subsidiary of Al Fozan Holding, and has been expanding aggressively, including a $5.4B energy deal in Algeria last year.
🔹 Geopolitical Backdrop
The bid comes amid deepening U.S.–Saudi economic cooperation, with Riyadh pledging up to $1 trillion in investments across defence, energy, and technology under the current U.S. administration.
🔹 What’s Next
- Deadline: Lukoil must complete the sale by January 17, per the latest U.S. Treasury timeline
- Any transaction remains subject to sanctions clearance and regulatory approval