Chevron is considering acquiring global assets of Russian oil firm Lukoil, which has been sanctioned by the US. According to sources familiar with the process, Chevron is exploring options to buy assets where the companies overlap, rather than the entire portfolio. Lukoil has a significant presence in Europe, Kazakhstan, Uzbekistan, Iraq, Mexico, Ghana, Egypt, and Nigeria, with three refineries, stakes in oilfields, and hundreds of retail fuel stations worldwide.

The Russian oil firm has a 13.5% stake in the Karachaganak field and 5% in the Tengiz field in Kazakhstan, which are also owned by Chevron, Exxon Mobil, Eni, and Shell. These fields are a crucial source of crude for the CPC pipeline, carrying over 1.6 million barrels per day to global markets. Additionally, Lukoil has a stake in the Nigerian offshore license OML-140, operated by Chevron.

The US Treasury recently gave clearance for potential buyers to discuss the purchase of Lukoil’s foreign assets, which are estimated to be worth at least $20 billion. Chevron would join other firms, including Carlyle, in the race to acquire Lukoil’s portfolio. The US imposed sanctions on Lukoil and Rosneft last month as part of efforts to pressure Moscow into peace talks with Ukraine.

Chevron’s interest in acquiring Lukoil’s assets is focused on areas where the companies have overlapping operations. The US oil major complies with applicable laws and regulations and does not comment on commercial matters. Lukoil extracts about 2% of global oil output and is seeking buyers for its international assets, which produce 0.5% of global oil and are valued at around $22 billion.

Other companies, including US private equity giant Carlyle, are also exploring options to buy Lukoil’s foreign assets. Finland-based petrol station chain Teboil, owned by Lukoil, expects a change in ownership as part of the Russian major’s efforts to sell international assets. Lukoil operates the West Qurna 2 project in Iraq, and the Iraqi government is discussing a possible six-month sanctions waiver to allow Lukoil to sell its stake in the project.

The potential acquisition of Lukoil’s assets by Chevron highlights the ongoing impact of US sanctions on Russian oil companies. As the situation continues to unfold, it remains to be seen which company will ultimately acquire Lukoil’s global assets and how this will affect the global oil market.