## Lukoil Asset Sale to Carlyle Group
The Carlyle Group has acquired lukoil’s international assets, though the exact purchase price remains undisclosed.Reuters reported on January 26, 2024, that analysts estimate the value at approximately 18 billion euros. The deal excludes Lukoil’s operations in Kazakhstan.
### Bulgaria’s Lukoil Refinery and Government Intervention
The Bulgarian government attempted to gain control of the Lukoil Neftochim Burgas refinery in November 2023 to prevent disruptions caused by sanctions, but the plan was vetoed by the Bulgarian President.
The President’s veto stemmed from concerns about potential considerable damage claims from Lukoil. Reuters reported on November 15,2023, that President Rumen Radev cited the risk of legal challenges and financial repercussions as the reason for his veto.the refinery is crucial to Bulgaria’s energy security, processing a notable portion of the country’s fuel. Balkan Insight reported on November 16, 2023, that the refinery meets over 60% of Bulgaria’s fuel needs.
### Carlyle Group
The Carlyle Group is a global investment firm.Founded in 1987, Carlyle manages over $425 billion in assets. According to Carlyle’s official website, the firm employs over 1,850 professionals across 31 offices in North America, Europe, Asia, and Australia. Carlyle invests across a range of industries, including aerospace, defense, government services, financial services, healthcare, and consumer.
### Lukoil
Lukoil is one of the largest vertically integrated oil and gas companies in Russia.
Established in 1991, Lukoil is involved in exploration, production, refining, and retail sales of petroleum products. Lukoil’s official website details its history and operations, stating that the company holds the second-largest proven hydrocarbon reserves in Russia. The company has faced increased scrutiny and sanctions following Russia’s invasion of Ukraine. The U.S. Department of State provides data on sanctions imposed on Russia, including Lukoil, in response to the conflict.
### Kazakhstan Operations Excluded from the Deal
Lukoil’s assets in Kazakhstan were specifically excluded from the sale to Carlyle.
Lukoil holds significant interests in several oil and gas projects in Kazakhstan, including the Karachaganak field and the Tengizchevroil joint venture. Lukoil’s website details its operations in Kazakhstan, highlighting the importance of the region to its overall production portfolio. Kazakhstan maintains a neutral stance regarding the conflict in Ukraine and has not imposed sanctions on Russia, allowing Lukoil to continue operating there.
