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Saudi Arabia’s Midad Energy has emerged as one of the leading contenders to buy Russian oil major Lukoil’s LKOH.MM international assets, leveraging deep political ties with Moscow and Washington, three people familiar with the matter said.
The assets, valued at about $22bn and spanning oilfields, refineries and thousands of fuel stations worldwide, have drawn bids from about a dozen investors, including US oil majors Exxon MobilXOM.N and Chevron CVX.N and private equity firm Carlyle, sources have said.
Lukoil is looking to sell its foreign operations after they were crippled by sweeping US sanctions imposed in October aimed at pressuring Russia to end its war in Ukraine.
Midad Energy and Lukoil declined to comment. The US Treasury did not immediately respond to requests for comment.
Midad Energy CEO Abdulelah Al-Aiban is the brother of powerful Saudi national security adviser Musaed Al-Aiban, who took part in US-Russia peace talks in Saudi Arabia in February. Their father, Mohamed Al-Aiban, was the kingdom’s first intelligence chief.
Midad Energy’s bid comes against the backdrop of booming economic cooperation between the US and Saudi Arabia under US President Donald Trump, building on decades of energy and security ties. In 2025 alone, Riyadh and Washington signed deals spanning defence, energy and technology, with Saudi Arabia pledging investments of up to $1tr.
Midad Energy has an ambitious expansion strategy, underscored by a $5.4bn deal with Algeria in October.
Midad Energy plans an all-cash offer for Lukoil’s assets, with funds to be held in escrow until sanctions on the Russian company are lifted, the sources said. The deal could involve U.S. companies, one of the sources added.
The US Treasury has already blocked two other bidders – Gunvor and US bank Xtellus Partners – from buying Lukoil assets, highlighting geopolitical hurdles.
Washington’s sanctions, which were also imposed on fellow Russian oil major Rosneft ROSN.MM, bar US citizens from dealing with the firms, freeze their US-based interests and cut off key sources of finance.
Lukoil has until January 17 to sell the assets, under the latest deadline set by the Treasury.
