Saudi Arabia’s Midad Energy Emerges as Leading Bidder for Lukoil’s Overseas Assets

SPA

LONDON, December 16 (Saudi Arabia Breaking News) – Saudi Arabia’s Midad Energy has emerged as one of the leading contenders to acquire Russian oil major Lukoil’s international assets, leveraging political ties with Moscow and Washington, three people familiar with the matter told Reuters.

The assets, valued at around $22 billion and spanning oilfields, refineries and thousands of fuel stations worldwide, have attracted bids from about a dozen investors, including U.S. oil majors Exxon Mobil and Chevron, as well as private equity firm Carlyle, the sources said.

Lukoil is seeking to sell its foreign operations after they were hit by sweeping U.S. sanctions imposed in October as part of efforts to pressure Russia over its war in Ukraine.

Midad Energy and Lukoil declined to comment, while the U.S. Treasury did not immediately respond to requests for comment.

Midad Energy’s chief executive, Abdulelah Al-Aiban, is the brother of Saudi National Security Advisor Dr. Musaed Al-Aiban, who participated in U.S.–Russia peace talks hosted in Saudi Arabia in February. Their father, Mohamed Al-Aiban, was Saudi Arabia’s first intelligence chief.

The bid comes amid expanding economic cooperation between Saudi Arabia and the United States under President Donald Trump, building on long-standing energy and security ties. In 2025, Riyadh and Washington signed agreements spanning defence, energy and technology, with Saudi Arabia pledging investments of up to $1 trillion.

Midad Energy, part of Midad Holding, a subsidiary of Al Khobar-based Al Fozan Holding, is pursuing an expansion strategy highlighted by a $5.4 billion agreement with Algeria signed in October.

The company plans an all-cash offer for Lukoil’s assets, with funds to be placed in escrow until sanctions on the Russian firm are lifted, the sources said, adding that the deal could involve U.S. companies.

The U.S. Treasury has previously blocked two other bidders, trading firm Gunvor and U.S. bank Xtellus Partners, from acquiring Lukoil assets, underscoring geopolitical challenges.

Under current sanctions, which also apply to Russian oil major Rosneft, U.S. citizens are barred from dealing with the companies, their U.S.-based assets are frozen, and access to key sources of finance is restricted.

Lukoil has until January 17 to complete the sale of the assets under the latest deadline set by the U.S. Treasury.