Saudi Arabia's Midad Energy Signs Letter to Acquire Lukoil's Overseas Assets Amid High-Stakes Contest

Saudi Arabia’s Midad Energy has signed a letter of intent to acquire all of Russian oil producer Lukoil’s overseas assets, Reuters reported Friday, citing sources familiar with the matter. The agreement was signed in late January amid what Reuters called a “high-stakes contest” against competitors including U.S. private equity fund The Carlyle Group. Under the proposed terms, Midad would purchase the assets in cash and place the funds in a dedicated escrow account until it secures approval from the U.S. Treasury to complete the transaction. “Midad is working to ensure compliance with the necessary regulatory requirements. This is seen as a high-stakes move, backed by strong political ties to Saudi Arabia,” one of the sources told Reuters. However, there is no guarantee that Washington will approve the sale, the sources cautioned. Midad and Lukoil declined to comment.