Midad Energy Signs Term Sheet to Acquire Lukoil Sanctioned Assets; Deal Pending U.S. Approval

Midad Energy, a Saudi-backed energy firm, has signed a term sheet to acquire Lukoil’s sanctioned offshore assets, outbidding rivals including Carlyle Group. The all-cash deal is conditional on U.S. regulatory approval and is placed in escrow to navigate sanctions compliance. The agreement covers oilfields, refineries, and thousands of fuel stations globally. Midad is leveraging strong political connections with Saudi Arabia, while the U.S. Treasury has issued temporary general licenses allowing divestment wind-downs under strict conditions. Explicit U.S. authorization is still required, and geopolitical tensions, including the ongoing Russia-Ukraine conflict, add uncertainty. Lukoil is actively seeking to offload foreign operations hit by U.S. sanctions, with buyers and sellers using escrow mechanisms to await government sign-off.