Billionaire financier Todd Boehly has assembled a consortium backed by the US government and influential Gulf investors to bid for the international assets of Russian oil company Lukoil, which has been seeking to sell these holdings following US sanctions last year. Boehly, who recently sold his stake in Chelsea Football Club, has been negotiating the potential acquisition for several months, aiming to challenge the position of US private equity firm Carlyle, which agreed to purchase the assets in January but has yet to receive final US approval.
The consortium reportedly includes the US International Development Finance Corporation (DFC), a government agency expected to hold a mid-teens equity stake, and Sheikh Tahnoon bin Zayed al-Nahyan, brother of the president of the United Arab Emirates, who is anticipated to lead the group through his International Holding Company (IHC). The Al-Khayyat family from Qatar, noted for previous collaborations with the White House and the Trump family, also holds a minority stake in the consortium.
Lukoil’s overseas portfolio, valued at approximately $20 billion when written down in March, comprises oil and gas fields stretching from Central Asia to Mexico, along with thousands of petrol stations and a significant refining network across Europe. These assets include more than three billion barrels of proven and probable reserves, as well as major refineries in Bulgaria and Romania. The current sale represents a rare opportunity to acquire substantial energy infrastructure outside Russia.
While Boehly’s group has advanced its proposal, the specifics of negotiations with Lukoil remain unclear. This prospective deal emerges nearly a year after Lukoil agreed to sell its international business to Carlyle, a transaction that has been delayed due to regulatory scrutiny in Washington.
The involvement of the US government’s DFC in the bidding process has raised questions about potential conflicts of interest, as different parts of the US administration are simultaneously evaluating the deal’s approval. Sources familiar with the proceedings acknowledge concerns that Carlyle might face a disadvantage competing against a consortium partly backed by the government and investors linked to the current administration.
The Al-Khayyat family’s business activities extend beyond this bid, including stakes in an Albanian property development involving Ivanka Trump and Jared Kushner and participation in a Syrian pipeline reconstruction project tied to US special envoy Tom Barrack. Their company, UCC, recently secured an oil concession in Libya without an open tender and holds a minority stake in a Venezuelan gas field operated by BP.
Representatives from the White House, Boehly, and the Al-Khayyat family declined to comment on the matter. Lukoil and the International Holding Company did not respond to inquiries.