Saudi Arabian company Midad Energy signed a letter of intent at the end of January to acquire the overseas assets of Russian oil company LUKOIL. This was reported by Reuters, citing three sources familiar with the negotiations.

According to the agency's sources, the agreement covers all targeted international assets. Midad is prepared to pay for the deal in cash and place funds in a special escrow account until obtaining necessary regulatory approvals, including from the U.S. Department of the Treasury.

A Reuters source noted that the company is "working to ensure compliance with all regulatory requirements," and the offer itself is seen as a high-stakes move, backed by strong political ties with Saudi Arabia.

However, the final closing of the deal to transfer the Russian company's international assets will require approval from the U.S. Treasury. Sources emphasize that there are no guarantees of agreement from Washington. Midad and LUKOIL did not respond to requests for comment. RBC sent a request to the Russian company's press service.

Previously, in mid-December, Reuters reported that Midad is one of the main contenders for LUKOIL's overseas assets. On January 29, the company announced a preliminary agreement to sell these assets to U.S. investment fund Carlyle. After that, according to the agency, Carlyle began preliminary talks with investors from the UAE to attract partners in case the deal proceeds.

As Reuters clarifies, negotiations to purchase the assets continue with other contenders, including Chevron, Quantum Energy Partners, and investment bank Xtellus Partners. LUKOIL confirmed that it is in discussions with several potential buyers, besides Carlyle.

Source: kun.uz