According to reports, TotalEnergies acquired Lukoil's 45% equity share in the enterprise for an undisclosed amount. There is also a chance that the transaction might be structured as an exchange of assets with the Russian entity.
Reuters reminds us that Lukoil initially obtained this 45% interest in the Zeeland refinery from a French corporation in 2009 for $725 million. As Lukoil’s holding was a subordinate one, the facility in the Netherlands did not officially fall under the US penalties levied against the Russian organization in November of the previous year, one source informed the agency. Nevertheless, TotalEnergies opted to purchase the stake amid anxieties regarding potential issues with petroleum provisions, which might be impacted by US sanctions limitations.
An extra contributing element was Lukoil’s intentions to divest its global holdings, Reuters indicates. Earlier in the year, the Russian enterprise entered into a contract with the investment firm Carlyle to offload worldwide assets, excluding Kazakhstan’s assets in the Caspian Sea. The agreement is non-exclusive and is still contingent upon fulfilling a number of stipulations, mainly regulatory approvals, including consent from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). Lukoil conveyed that it was maintaining simultaneous discussions with other prospective acquirers, emphasizing that the agreement was not yet completed.
At the start of the month, Reuters informants conveyed that Chevron, along with Texas-based Quantum Energy Partners, as well as a consortium spearheaded by the investment bank Xtellus, were continuing negotiations with Lukoil and U.S. authorities concerning the purchase of the Russian corporation’s international properties.
Lukoil revealed intentions to dispose of its international operations last October subsequent to the US enforcing sanctions on it and Rosneft, Russia’s two leading oil exporting businesses.
Source: Reuters