Saudi Arabia’s Midad Energy has emerged as a leading contender to buy Russian oil giant Lukoil’s international assets, taking advantage of its close political ties to Moscow and Washington, several sources familiar with the matter told Reuters.
Lukoil’s international assets, valued at $22 billion and including oil fields, refineries and thousands of gas stations around the world, have attracted offers from about a dozen investors, including U.S. oil giants Exxon Mobil and Chevron and private equity firm Carlyle, the sources said, according to Agerpres.
Lukoil is looking to sell its foreign operations after they were hit by U.S. sanctions imposed in October to pressure Russia to end its war in Ukraine.
Midad Energy CEO Abdulelah Al-Aiban is the brother of powerful Saudi national security adviser Musaed Al-Aiban, who attended U.S.-Russia peace talks in Saudi Arabia in February. Their father, Mohamed Al-Aiban, was Saudi Arabia’s first intelligence chief.
The Midad Energy offer comes amid a deepening economic partnership between the U.S. and Saudi Arabia under President Donald Trump, after decades of energy and security ties. In 2025 alone, Riyadh and Washington have signed agreements covering defense, energy and technology, with Saudi Arabia promising up to $1 trillion in investment.
Midad Energy, part of Midad Holding, a subsidiary of Al Khobar-based Al Fozan Holding, has an ambitious expansion strategy, evidenced by a $5.4 billion deal it struck with Algeria in October.
Sources cited by Reuters said Midad Energy plans to launch an all-cash bid for Lukoil’s assets, with the funds to be held in escrow until sanctions on the Russian company are lifted. The deal could involve US companies, one of the sources added.
The US Treasury has already blocked two other bidders – trader Gunvor and US bank Xtellus Partners – from buying Lukoil assets, highlighting the geopolitical obstacles to a deal.
The sanctions imposed by Washington, which have also been imposed on Russian oil company Rosneft, bar US citizens from dealing with the two companies, freeze their US interests and block key sources of funding.
Lukoil has until January 17 to sell its overseas assets, according to the latest deadline set by the US Treasury.
In Romania, Lukoil owns the Petrotel refinery and sells fuels through a network of 300 distribution stations.