A gas torch and Lukoil company sign are shown at the Filanovskogo oil platform in the Caspian Sea in 2018.Maxim Shemetov/Reuters
Private equity group Quantum Energy Partners is working on a bid that could involve U.S. oil major Chevron CVX-N for the international assets of Russian oil major Lukoil LUKOY, a source familiar with the matter said.
Quantum is planning the move through its newly formed upstream acquisition unit Artemis Energy, the source said, which would be among the largest energy deals since Western sanctions were imposed on Russia following its invasion of Ukraine.
The Financial Times first reported on Wednesday that Chevron and Quantum were teaming up to bid for the assets, valued at US$22-billion by Lukoil.
“Chevron has a diverse exploration and production portfolio globally and continues to assess potential opportunities,” said a Chevron spokesperson in an e-mailed statement to Reuters, declining to comment on commercial matters.
“In all its activities, Chevron operates under a code of business ethics and complies with laws and regulations applicable to our business.”
Artemis declined to comment. Quantum, Lukoil and the White House did not immediately respond to requests for comment.
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Artemis was formed by Gilad Myerson, the architect of Ithaca Energy which has become one of the largest independent producers in Europe in deals including the acquisition of Chevron’s North Sea portfolio. Both Myerson and Quantum have a history of transactions involving Chevron.
Reuters reported in November that Chevron was studying options to buy Lukoil’s global assets.
Reuters also reported in December that Saudi Arabia’s Midad Energy was one of the leading contenders to buy Lukoil’s international assets.
If a deal is reached, Chevron and Quantum plan to split Lukoil’s assets between them, the FT said.