Chevron and Quantum Capital Group are reportedly lining up a bid for sanctions-hit Lukoil’s $22 billion international operations
Two US majors, Chevron and Quantum Capital Group, are lining up a bid to take control of the international portfolio of sanctioned Russian oil giant Lukoil, with the administration of President Donald Trump signaling its support for the proposal, the Financial Times has reported.
Washington imposed sanctions on Russia’s second-biggest oil producer last October as part of its broader effort to pressure Moscow over the Ukraine conflict, forcing Lukoil to divest its overseas holdings worth $22 billion. Due to the sanctions, any transaction requires a specific license from the Treasury Department to proceed, with the clearance for negotiations extended until January 17.
Chevron and Quantum will bid for the whole portfolio of Lukoil’s international assets, FT wrote on Wednesday, which includes three European refineries, stakes in oil and gas fields in countries such as Iraq, Kazakhstan, several African nations, and Mexico, plus a retail network of over 2,000 fuel stations worldwide.
A senior US official welcomed the Quantum-Chevron proposal to the FT, stating, “We are looking for a divestment that places ownership of these assets into the hands of an American owner and operator ad infinitum.”
Other parties reportedly eyeing the assets include ExxonMobil, the Hungarian firm MOL, the Emirati International Holding Company, private equity major Carlyle, and Saudi Arabia’s Midad Energy. A previous offer from Swiss-based trader Gunvor Group collapsed in November after the US Treasury accused the firm of having Kremlin ties.
Moscow has consistently condemned Western sanctions as politically motivated and illegal, warning they will backfire. Following the collapse of the Gunvor deal, Kremlin spokesman Dmitry Peskov said the situation with Lukoil highlighted that “illegal trade restrictions” imposed by the US are “unacceptable and hurt international trade.”
Chevron has faced a decades-long legal and public relations battle primarily over massive environmental damage from Texaco’s former operations in the Ecuadorian Amazon, culminating in a contested $9.5 billion judgment against it in 2011. The company also faces broader criticism for its environmental record, including allegations of greenwashing and operational incidents globally.
