US private equity major Carlyle is in preliminary talks with Abu Dhabi investors, including Mubadala, IHC and XRG, to bring in co-investors for its proposed acquisition of Lukoil’s international assets, according to a report by Reuters.
The report cites unnamed sources familiar with the matter as saying that the potential deal, announced last week, would see Carlyle acquire Lukoil assets including Iraqi oilfields and eastern European refineries, pending approval from US authorities due to sanctions on the Russian producer. Sources estimate the portfolio could be valued at around $20bn, with UAE investors reportedly particularly interested in Lukoil’s trading unit, Litasco.
Carlyle intends to maintain the portfolio as a single, integrated platform, with a typical private equity hold period of approximately five years before an exit. Any transaction would be structured in compliance with the US Office of Foreign Assets Control (OFAC), with proceeds required to remain in US-jurisdiction accounts until sanctions are lifted.
It remains unclear when Carlyle would finalise co-investor arrangements, and no binding agreements have been reached. Lukoil is reportedly in discussions with multiple potential buyers for its international assets.
