Shafaq News– Moscow

Lukoil, Russia’s largest privately owned oil producer, agreed to sell its overseas projects, including oil fields in Iraq, to a group of US companies, the Russian company announced on Thursday.

According to a statement, Lukoil, which is under US sanctions over the war in Ukraine, signed an agreement with US investment company Carlyle on the sale, noting that the deal does not include its assets in Kazakhstan.

The agreement remains subject to approval by the US Treasury, as the company continues parallel negotiations with other potential investors, the statement indicated, adding, “LUKOIL International GmbH is on sale owing to restrictive measures introduced by some countries against the Company and its subsidiaries.”

The group’s overseas portfolio includes stakes in oil fields and refineries across several countries, including Iraq, Azerbaijan, Egypt, the United Arab Emirates, Nigeria, and Mexico.

In October, the US and UK imposed sanctions on Lukoil, prompting the company to signal plans to divest its overseas assets and reference an offer by Gunvor to acquire Lukoil International GmbH. Gunvor later abandoned the bid after the US Treasury said it would not issue a license for the transaction until the war in Ukraine ends, while media reports indicated interest from multiple potential buyers.

The company subsequently declared force majeure on its operations after these measures severely restricted its ability to function at Iraq’s West Qurna-2 oilfield, which accounts for about nine percent of Iraq’s output. According to the Middle East Forum Observer, the field could see production decline if Lukoil exits, as state-run companies with limited technical capacity take over.

Read more: Russia’s Lukoil turmoil deepens risks for Iraq’s West Qurna-2 oilfield