LUKOIL today confirms its decision to initiate disposal of certain international assets in response to the imposition of restrictive measures by a number of jurisdictions.

Key highlights:

• The Company announces its intention to sell its international assets, citing “the introduction of restrictive measures against the Company and its subsidiaries by some states” as the driving force behind this strategic decision.
• The process is already underway: the Company has begun the consideration of bids from potential purchasers.
• The transactions will be conducted under the licence issued by the U.S. Office of Foreign Assets Control (“OFAC”). The Company will seek an extension of this licence if necessary, to ensure the uninterrupted operations of its international assets during the transition period.
• The Company’s global footprint and international operations are significant: LUKOIL is one of the largest vertically-integrated oil & gas companies in the world and accounts for over 2% of global crude oil production.

Strategic Rationale:

In light of evolving external operating conditions, including sanctions regimes that affect access to capital, markets, and logistics, the Company’s Board of Directors considers the asset divestiture the most prudent approach to safeguard value and limit operational risks. The divestment aligns with LUKOIL’s strategic priority of preserving Group stability and focusing on core assets in its home jurisdiction.

Next Steps:

• LUKOIL will engage with interested parties to solicit bids for relevant international assets.
• The Company will evaluate offers pursuant to a formal transaction process, subject to regulatory, competition, and licensing approvals as applicable.
• LUKOIL will continue to operate its international projects and assets in accordance with the license terms until transaction completion and will apply for any necessary extensions of the wind-down licence to maintain continuity.

KeyFacts Energy: LUKOIL Russia country profile