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International Holding Company (IHC), Abu Dhabi's largest listed conglomerate, conveyed to the U.S. Treasury earlier this week that it was interested in purchasing the foreign assets of Russian oil producer Lukoil. The expression of interest places IHC among a growing pool of global suitors, including ExxonMobil, Chevron and U.S. private equity firm Carlyle, following sanctions that disrupted Lukoil's overseas operations. Washington recently dismissed Swiss trader Gunvor as a bidder, leaving the field open. Lukoil's foreign portfolio spans multiple continents and contributes roughly 0.5% of global oil output, making it a significant target despite regulatory hurdles.
International Holding Company (IHC), the Abu Dhabi conglomerate closely linked to a senior member of the United Arab Emirates' ruling family, stated earlier this week that it had informed the U.S. Treasury of its interest in acquiring the overseas assets of Russian oil group Lukoil. The clarification came in response to a Reuters query, with the company indicating that it had indeed expressed interest in Lukoil's international portfolio, although it declined to elaborate further. Advertisement
IHC's move positions it alongside a widening roster of potential bidders for Lukoil's global operations, a list that now includes major U.S. energy companies ExxonMobil and Chevron, as well as private equity firm Carlyle. Interest has intensified after U.S. sanctions disrupted Lukoil's foreign activities, creating an opportunity for strategic buyers. Washington had earlier rejected Swiss commodity trader Gunvor as a prospective acquirer, prompting authorities to allow other parties to engage with Lukoil. Potential bidders have until mid-December to hold discussions with the company, while any eventual transaction will require explicit U.S. approval.
The sanctions imposed by Washington in the past week on Russia's two largest oil firms, Rosneft and Lukoil, form part of a wider effort to exert pressure on Moscow over the conflict in Ukraine. Since the restrictions came into effect, Lukoil's international network-representing roughly 0.5% of the world's oil production-has faced growing operational challenges.
Lukoil's overseas footprint is extensive, with three refineries across Europe, along with equity stakes in oilfields in Kazakhstan, Uzbekistan, Iraq, Mexico, Ghana, Egypt, the UAE and Nigeria. The group also operates hundreds of retail fuel stations globally, including a presence in the United States. These assets have historically been pivotal to Lukoil's diversification beyond its Russian base and had attracted investor attention even before sanctions shifted market dynamics.
IHC, meanwhile, maintains a broad investment portfolio spanning healthcare, energy, real estate, agriculture and mining, with holdings across the U.S., India, Latin America and Africa. The company's chief executive had mentioned earlier this week that IHC could deploy between USD 30 billion and USD 35 billion over an 18-month cycle, funded through a combination of debt and equity.
Source - Reuters
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