The U.S. federal government has extended the deadline for talks between Lukoil and potential buyers of its foreign business by another month, until June 27, suggesting the forced divestment process is turning out to be more complicated than maybe hoped for.
This is the sixth extension of the deadline, after the Trump administration imposed individual sanctions on Lukoil last October, forcing the company to start looking for a buyer for its international business, which is worth an estimated $22 billion.
The terms of the deal are that the Russian major cannot receive any advance payment and that it also cannot receive any other payments at all, with the money paid for the deal placed in a frozen account under U.S. jurisdiction, Reuters noted in a report on the latest deadline extension. The terms also include a final approval of any potential deal by the U.S. Department of the Treasury.
Lukoil is the most active Russian energy company internationally, with upstream operations in the Middle East, Central Asia, and Latin America, and retail fuel businesses in many parts of the world, including the United States. The company operates a network of more than 2,000 fuel stations across the world.
Bidders that have tried to seal a deal so far include Gunvor, which turned out to be out of favor with the U.S. administration, which refused to approve its bid, as well as Carlyle Group, and a consortium made up of Chevron and Quantum Capital Group. Exxon, Hungarian MOL, Emirati International Holding Company, and Saudi Midad Energy have also been mentioned as potential suitors. Lukoil signaled last year it was open to accepting one bid, submitted by a consortium of companies led by investment bank Xtellus Partners, but the U.S. federal government refused to give the green light to that deal.
