Chevron, Quantum Capital Group Vie for $22 Billion in Lukoil's Global Assets Amid US Sanctions

In a move that could have significant implications for the global oil market, US oil giant Chevron and private equity firm Quantum Capital Group have partnered to bid on Russian oil company Lukoil's international assets, valued at $22 billion. The assets in question include oil and gas production, refining facilities, and over 2,000 filling stations spanning Europe, Asia, and the Middle East. According to a report by the Financial Times, the bid targets Lukoil's entire non-Russian portfolio and is led by Quantum, working with its London-based portfolio company Artemis Energy. The partnership aims to divide the assets between them, committing to long-term ownership and operation. This development comes as the US has relaxed some sanctions against Lukoil to allow gas stations outside Russia to continue operating. However, companies working with the Russian giant still risk secondary sanctions, which would deny access to US banks, traders, transporters, and insurers. Other companies, including US investment firm Carlyle and Abu Dhabi sovereign wealth fund IHC, have also expressed interest in Lukoil's foreign assets. Swiss energy trading company Gunvor withdrew its takeover bid after being labeled a front for the Kremlin by Washington in November. The US government has given foreign investors permission to negotiate the purchase of Lukoil's assets abroad without risking US reprisals, a permission that expires on January 17. The move is seen as a way to put pressure on Russia in its war with Ukraine.