A bank acting for the consortium has reportedly bought billions of dollars of frozen Lukoil securities from Western investment funds, positioning the group for a proposed exchange of the securities for the Russian oil company’s international assets.
The portfolio was initially valued at about $22 billion, although its value has since declined after sanctions disrupted some operations. The figure covers Lukoil’s entire international portfolio across Africa, Europe, the Middle East and other markets, not its African assets alone.
If completed, the transaction could shift Lukoil’s interests in Egypt, Cameroon, Ghana, Nigeria and the Republic of Congo into an investment structure backed by American and Gulf investors.
The consortium includes Boehly, Emirati investment groups International Holding Company and Al Hail Holding, the Syrian-Qatari Al-Khayat brothers and the US International Development Finance Corporation, the American government’s overseas investment agency.
According to Reuters, a bank representing the consortium acquired the frozen securities from about 10 US and British investment funds, as well as American depositary banks that held them for retail investors. The securities were reportedly bought at about 30 cents on the dollar.
The transaction has not been completed, and representatives of Boehly, Lukoil and the US development agency did not confirm the proposal to Reuters. However, people familiar with the process said an agreement could be reached within weeks.
Forbes estimates Boehly’s fortune at about $9.2 billion. The American investor co-founded Eldridge Industries and holds interests across insurance, finance, media and sport, including stakes in the Los Angeles Dodgers and Los Angeles Lakers. He also led the group that acquired Chelsea Football Club in 2022.
Five African oil markets in play
Lukoil’s African holdings include producing assets, undeveloped discoveries and deepwater exploration projects involving several national oil companies and international energy groups.
In Egypt, Lukoil holds 50% interests in the West Esh El-Mallaha oilfield and its extension. It also owns 24% of the Meleiha concession, where Italian energy company Eni controls the remaining 76%.
In Cameroon, the Russian company holds 30% of the Etinde offshore block. The 460-square-kilometre project is located in the Gulf of Guinea, close to the country’s maritime border with Equatorial Guinea.
Lukoil also owns 18% of Nigeria’s offshore OML 140 block, where Chevron is the operator. The block covers more than 1,200 square kilometres and includes the Nsiko discovery and other prospective structures.
In the Republic of Congo, Lukoil owns 25% of the Eni-operated Marine XII project. The block contains the producing Nene oilfield and Litchendjili gas-condensate field and supplies gas to Congo’s expanding liquefied natural gas operations.
The company paid $800 million for its Marine XII interest in 2019, providing one of the few publicly disclosed valuations for an individual African asset within the wider portfolio.
Ghana represents one of the most commercially and politically sensitive parts of any proposed transaction.
Lukoil holds 38% of the Deepwater Tano Cape Three Points block, which contains the undeveloped Pecan oilfield. Pecan Energies, owned by the Africa Finance Corporation, operates the block with a 50% interest, while the Ghana National Petroleum Corporation holds 10% and Fueltrade owns the remaining 2%.
Ghana was reported in May to be considering the use of pre-emptive rights to acquire Lukoil’s interest. Such rights could give existing partners or the government priority over an outside buyer and mean that not every African asset automatically transfers to Boehly’s consortium.
US approval remains the biggest obstacle
Lukoil began looking for buyers for its overseas assets after the United States imposed sanctions on the company in October 2025 as part of efforts to reduce Russia’s oil revenue.
American private equity company Carlyle previously agreed to pursue the portfolio but later withdrew from the process, leaving Boehly’s consortium as the leading bidder.
The Boehly proposal is structured as a cashless transaction. Frozen Lukoil securities acquired from Western investors would be exchanged for the company’s international assets, while the securities intended for Lukoil would reportedly be placed in an escrow account.
That structure is designed to prevent Lukoil from receiving immediate financial benefit from the sale. It also allows Western investors to recover part of the value of securities that have been frozen or written down since Russia’s invasion of Ukraine.
However, the transaction still faces a significant regulatory question.
The US Treasury’s Office of Foreign Assets Control says its current licence permits negotiations, due diligence and contingent contracts but does not authorise the actual transfer of Lukoil’s assets.
Treasury guidance also says an approved transaction must sever the international business from Lukoil, keep any money owed to the Russian company blocked under US jurisdiction and avoid providing it with an upfront windfall, including through an asset or share swap.
The negotiating licence expires on 21 November 2026. Boehly’s consortium would therefore require separate US Treasury approval before taking control of any African or other international assets.
A successful transaction would give the US-backed consortium interests alongside companies including Chevron, Eni and African national oil groups. It would also mark a significant change in the ownership of energy resources across five African markets.
For Lukoil, the proposed sale would mean surrendering international assets while being prevented from immediately accessing much of their value. For Western investors, it offers an exit from frozen securities, but at a reported discount of about 70%.
African governments and existing project partners, meanwhile, will determine whether individual assets can be transferred and whether they prefer the proposed new investors, domestic ownership or alternative buyers.
Source: africa.businessinsider.com
