Saudi-backed Midad Energy signs asset term sheet with Luk Oil — Report

LootboxPhobia · 2026-02-14T05:01:55+00:00

Supported by Saudi Arabia, Midad Energy signs an agreement to acquire assets of the sanctioned Russian Luk Oil company. The deal is a full cash offer, with funds deposited in a escrow account, pending regulatory approval. This transaction demonstrates Middle Eastern investors' interest in undervalued oil and gas assets, while also facing regulatory and geopolitical challenges.

LootboxPhobia

2026-02-14 05:01:55

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Investing.com – According to Reuters, Saudi-backed Midad Energy has signed a term sheet to acquire assets of the sanctioned Russian energy giant Lukoil, surpassing competitors including private equity firm Carlyle Group.

The agreement was finalized at the end of January and covers all targeted Lukoil assets. The deal is structured as a fully cash offer, with funds already deposited into an escrow account, and both parties are seeking the necessary regulatory approvals.

The transaction still depends on approvals from various regulatory agencies, including the U.S. Department of the Treasury, as parties work to address restrictions imposed by Western sanctions on Lukoil’s overseas assets.

This potential acquisition reflects Russia’s ongoing efforts to divest sanctioned overseas assets. It also indicates a growing interest among Middle Eastern investors in purchasing global oil and refining assets at discounted prices.

Before the deal can be completed, it faces significant hurdles related to regulatory review and geopolitical considerations.

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