Midad Energy's High-Stakes Play: Eyeing Lukoil's Assets Amid Geopolitical Tensions

Saudi Arabia's Midad Energy is a top contender to acquire Lukoil's international assets, valued at $22 billion, amid geopolitical tensions. Deep ties with Moscow and Washington fortify its bid. Lukoil's sale is propelled by U.S. sanctions. Midad plans a cash offer, with U.S. involvement possible.

Saudi Arabia-based Midad Energy has emerged as a prominent contender for acquiring Lukoil's international assets, according to sources. The stakes are high with the assets valued at around $22 billion, comprising oilfields, refineries, and fuel stations worldwide. Competing bids are coming from notable investors, including Exxon Mobil and Chevron.

Lukoil is divesting foreign operations due to crippling U.S. sanctions aimed at putting pressure on Russia to cease its conflict in Ukraine. Midad's strategic bid is backed by robust political connections in both Moscow and Washington. Notably, Midad Energy's CEO, Abdulelah Al-Aiban, is related to influential figures with diplomatic roles connecting Saudi, U.S., and Russian interests.

This bid by Midad Energy coincides with expanding economic cooperation between the U.S. and Saudi Arabia. A notable $5.4 billion deal with Algeria underscores Midad's expansion ambitions. As part of the plan, funds for Lukoil's assets are to be held in escrow until sanctions are lifted, reflecting the geopolitical complexities involved.

(With inputs from agencies.)