Kazakhstan-Based Lukoil Assets Could End Up in Hungarian Hands

Top American oil companies are also vying for the assets, Orda.kz reports, citing Reuters.

Hungarian oil and gas company MOL has informed U.S. officials of its interest in purchasing Lukoil’s foreign assets. U.S. sanctions have forced the Russian producer to put its international holdings up for sale by December 13.

According to Reuters, Lukoil is in talks with Exxon Mobil, Chevron, and investors from the Middle East. Earlier, the U.S. Treasury rejected Switzerland’s Gunvor as a potential buyer.

MOL is particularly interested in European refineries, the retail fuel network, and shares in upstream assets in Kazakhstan and Azerbaijan.

Neither MOL nor the White House responded to journalists’ inquiries. Reuters notes that Hungarian Prime Minister Viktor Orban discussed MOL’s plans with Donald Trump in November. The visit secured Budapest a one-year sanctions exemption to continue buying Russian oil and gas.

MOL is also seeking to acquire the Serbian refinery NIS, which is likewise under U.S. sanctions.

In October, the United States imposed sanctions on Rosneft, Lukoil, and 34 subsidiaries. We previously reported that major American oil and gas companies are considering participating in the deals. Exxon Mobil is showing interest in stakes in Kazakhstan’s Tengiz and Karachaganak projects.

Investment firm Carlyle Group is exploring the purchase of a package of assets and, according to sources, may consider reselling individual parts later. Abu Dhabi’s national oil company, ADNOC, is interested in Lukoil’s gas projects in Uzbekistan.

Oil and gas analyst Olzhas Baidildinov noted that Lukoil’s assets in Kazakhstan require a position from the Ministry of Energy since they are located on the territory of the Republic of Kazakhstan.

He stated that a logical scenario would be transferring these shares to KazMunayGas, with the possibility of involving a Chinese investor if needed. According to Rystad Energy, Lukoil’s holdings in Tengiz and Karachaganak could generate up to five billion dollars in net cash flow by 2030.

An additional contender for Lukoil’s assets has also emerged: Austrian businessman Bernd Bergmair, the former owner of the international holding MindGeek, which includes Pornhub. Bergmair’s lawyer called Lukoil International GmbH “an excellent investment” but declined to specify which assets are being targeted.
 
Original Author: Ruslan Loginov