Finance
Kazakhstan says it submits formal bid to US to acquire local Lukoil assets
Published by Global Banking and Finance Review
Posted on January 28, 2026
2 min readLast updated: January 28, 2026
Tags:oil and gas
Quick Summary
Kazakhstan has submitted a bid to acquire Lukoil's local assets, seeking OFAC approval amid U.S. sanctions. The assets include stakes in major oilfields and a pipeline consortium.
Kazakhstan Submits Bid to Acquire Lukoil's Local Assets from US
Kazakhstan's Acquisition Bid for Lukoil
ASTANA, Jan 28 (Reuters) - Kazakhstan has submitted a formal bid to the U.S. authorities to acquire Russian oil producer Lukoil's stakes in the country's energy projects, Energy Minister Yerlan Akkenzhenov said on Wednesday.
Background on Lukoil and Sanctions
Lukoil was sanctioned by the U.S. last October in what Washington said was a response to slow progress in peace talks between Russia and Ukraine. The move has forced the oil major to dispose of its overseas assets.
Details of the Bid and Government Actions
The Russian oil group holds stakes in Kazakhstan's Karachaganak and Tengiz oilfields, as well as in the Caspian Pipeline Consortium, which carries the bulk of Kazakhstan's oil to the Russian port of Novorossiysk for export.
Implications of the Acquisition
Akkenzhenov said the government had sent a letter to the U.S. Office of Foreign Assets Control (OFAC), which, under the U.S. sanctions, must approve potential transactions.
Kazakhstan has said it holds preemption rights on buying out Lukoil.
"The energy ministry has sent the corresponding request by letter to OFAC," the minister said.
Lukoil has until February 28 to sell its assets, under the U.S. sanctions.
(Reporting by Tamara Vaal; writing by Vladimir Soldatkin; Editing by Mark Trevelyan)
Key Takeaways
- •Kazakhstan submits a formal bid to acquire Lukoil's local assets.
- •Lukoil is under U.S. sanctions, requiring asset disposal.
- •Kazakhstan holds preemption rights on Lukoil's stakes.
- •The bid involves Karachaganak, Tengiz oilfields, and Caspian Pipeline.
- •OFAC approval is necessary for the transaction.
Frequently Asked Questions about Kazakhstan says it submits formal bid to US to acquire local Lukoil assets
1What is Lukoil?
Lukoil is a major Russian oil company involved in the extraction and production of oil and gas, with significant international operations.
2What is an acquisition bid?
An acquisition bid is an offer made by an individual or company to purchase another company or its assets, often involving negotiations and regulatory approvals.
3What are energy projects?
Energy projects refer to initiatives aimed at producing, distributing, or managing energy resources, including oil, gas, and renewable energy sources.
4What are preemption rights?
Preemption rights are legal rights that allow an entity to purchase an asset before it is offered to other potential buyers.
