US Carlyle Group agrees to acquire Lukoil international assets, including those in Romania
The private equity Carlyle Group, based in the United States, has agreed to purchase Lukoil’s international assets, including those in Romania, Biziday.ro reported. The company is already involved in the exploitation of Romanian gas in the Black Sea through Black Sea Oil & Gas.
The acquisition was announced on Thursday, January 29, by the Russian company, which stated that it will transfer all its international assets, except those in Kazakhstan, to the American investment group. These include operations in Europe, the Middle East, Africa, Central Asia, and Mexico, and range from a controlling stake in Iraq's sprawling West Qurna 2 oilfield to refineries in Bulgaria and Romania, Reuters said.
Although the two companies have reached an agreement, Lukoil also said that the deal still depends on the approval of regulatory authorities and that it will continue negotiations with other potential buyers until the transaction is finalized. The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) is also needed. The US Treasury had given Lukoil until February 28 to sell its global portfolio.
The value of the transaction was not disclosed.
The Carlyle investment fund has a market value of over USD 21 billion and assets under management exceeding USD 450 billion. In Romania, it owns and operates Black Sea Oil & Gas SA (or BSOG), the first company, excluding Petrom, to begin exploiting natural gas in the Black Sea. Currently, it provides about 10% of Romania’s gas consumption and has plans to expand into the energy production sector.
Carlyle CEO Harvey Schwartz has been noted for critical but moderate comments regarding Donald Trump’s tariff policy last year, and earlier this year, he advocated for the political independence of the Fed.
Lukoil is the second-largest Russian oil company. Its international assets are valued at USD 22 billion.
The company owns all chains outside Russia, including a refinery and 321 gas stations in Romania, and was put up for sale as a result of restrictive measures introduced by the US. Lukoil claims to have 4,000 employees in Romania, although it is possible this total also includes employees of companies operating some of its gas stations under franchise agreements.
(Photo source: Mira Agron | Dreamstime.com)
