US Treasury Blocks Xtellus Bid for Lukoil Foreign Assets, Deal Race Widens

Quick Summary

Reuters reports the US Treasury rejected a cashless, securities-swap style offer led by Xtellus Partners to buy Lukoil’s foreign assets (about $22B). The Treasury objection was that the group was not authorised to use sanctioned securities in the transaction. The rejected group is looking to escalate the decision and apply for a licence. Competing bidders still in the mix include Exxon Mobil, Chevron, and Carlyle, among others. Negotiations are allowed to run until January 17, 2026.

Winners

Category 1: US Integrated Oil Majors With M&A Firepower

Why: With the Xtellus structure blocked, the advantage may tilt toward large, established operators that can navigate regulators and execute straightforward cros ...