Lukoil accepts Gunvor offer to buy international assets

Gunvor Group Ltd. has made an offer to purchase Lukoil International GmbH, which PJSC Lukoil, Russia's second-largest oil company, has accepted. 

Lukoil International is a subsidiary of PJSC Lukoil and owns international assets of Lukoil Group.

Lukoil confirmed the offer in an Oct. 30 release, saying the ‘key terms’ of the deal were agreed earlier by the companies.

The move comes following US sanctions imposed on the company and its subsidiaries.

Asked by Reuters at the ADIPEC energy conference in Abu Dhabi this week about whether or not Lukoil could buy back the assets if sanctions were lifted at a later date, Gunvor Group chief executive officer Torbjorn Tornqvist said no, the potential deal did not offer a buyback clause.

Closing of the binding agreement is subject to certain conditions including obtaining permission from the US Treasury Department's Office of Foreign Assets Control (OFAC), as well as any other applicable licenses, permits, and other authorizations in other applicable jurisdictions.

If necessary, the parties will apply for an extension of the existing OFAC license—which gives companies until Nov. 21 to finalize deals—and any other licenses needed to ensure uninterrupted operations of the assets to be sold until the completion of the transaction.