By John Lee.
Russia's Lukoil has signed an agreement with US investment company Carlyle for the sale of LUKOIL International GmbH, a wholly owned subsidiary that holds the its international assets.
The agreement is non-exclusive and subject to regulatory approval, including permission from the US Department of the Treasury's Office of Foreign Assets Control (OFAC).
Lukoil said it continues negotiations with other potential buyers.
Iraq's West Qurna-2 oil field, operated by Lukoil under a service contract, is fully state-owned. Following recent US sanctions on Lukoil and the company declaring force majeure, the Iraqi Council of Ministers approved the transfer of operational management of West Qurna-2 to Basra Oil Company (BOC).
Recent press reports say that Chevron is interested in taking over operations at West Qurna 2.
Full statement from Lukoil:
LUKOIL AGREES WITH CARLYLE ON SALE OF INTERNATIONAL ASSETS
PJSC "LUKOIL" (hereinafter - the "Company") informs that it signed agreement with US investment company Carlyle on sale of LUKOIL International GmbH (100% subsidiary of PJSC "LUKOIL" which owns international assets of LUKOIL Group). The transaction does not include the assets in Kazakhstan which will remain to be owned by LUKOIL Group and continue their operations under respective license.
The agreement signed is not exclusive for the Company and is subject to some conditions precedent such as procurement of necessary regulatory approvals including permission of the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) for the transaction with Carlyle.
The Company also continues negotiations with other potential purchasers.
LUKOIL International GmbH is on sale owing to restrictive measures introduced by some countries against the Company and its subsidiaries.
(Source: Lukoil)
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