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Russian oil giant Lukoil has accepted an offer from Switzerland-based commodity trader Gunvor Group to buy its international subsidiary, which includes Iraq’s West Qurna 2 oil field.
The sale comes after the US and UK imposed sanctions.
Lukoil’s biggest foreign asset is the West Qurna 2 oil field, in which it holds a 75 percent stake. The field’s output reached 480,000 barrels per day (bpd) in April, according to a report by Russia’s Interfax news agency.
The Russian energy company is also developing Block 10, covering 5,600 square km in Dhi Qar and Al Muthanna provinces, 120 km west of the city of Basra.
Lukoil, as operator, holds an 80 percent stake in the project and Japan’s Inpex Corporation holds 20 percent, the report said.
The parties have agreed upon the key terms of the deal, Lukoil said in a statement, adding it will not negotiate with other potential buyers.
No financial details were given.
Lukoil participates in projects in Azerbaijan, Kazakhstan, Uzbekistan, Iraq, Egypt, Cameroon, Nigeria, Ghana, Mexico, the UAE and the Republic of the Congo, according to the company’s website.
It also owns refineries in Bulgaria, Romania and the Netherlands, the website said.
Lukoil was included in the UK sanctions list on 15 October, Interfax reported. International projects in Azerbaijan and Kazakhstan involving Lukoil and Rosneft were immediately exempted from sanctions until 14 October 2027.
Last week, Lukoil’s trading subsidiary Litasco Middle East DMCC was included in the European Union’s sanctions list, Interfax said.
(Writing by P Deol; Editing by Anoop Menon)
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