IHC interested in Lukoil’s foreign assets is the focus as Abu Dhabi’s International Holding Company moves to acquire Russian oil firm Lukoil’s overseas holdings. The conglomerate is in talks with the U.S. Treasury to buy these assets, which have come under sanctions.
IHC’s Acquisition Efforts Growing
IHC recently notified the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) of its interest in Lukoil’s foreign assets. This move follows Lukoil’s decision to sell international properties after U.S. sanctions limited its operations abroad. IHC’s potential acquisition includes stakes in oil fields and refineries outside Russia, aligning with its plans to expand globally and diversify its portfolio.
Strategic Global Expansion
The company, which is the largest by market value in the UAE, aims to invest $30 billion to $35 billion over 18 months across various sectors, including energy. The acquisition would strengthen IHC’s position in the global energy market and establish a greater presence in key regions such as the U.S., India, and Central Asia. Negotiations with OFAC are authorised until mid-December, providing a deadline for finalizing potential deals.
Lukoil’s Overseas Assets on Sale
Lukoil’s assets for sale include significant interests in oil ventures in Iraq, Egypt, and European refineries. The urgency is driven by sanctions that took effect recently, which force Russian oil firms to restructure or divest non-domestic holdings. Western sanctions have reshaped the landscape, providing opportunities for companies like IHC to broaden their international footprint in energy.
Gulf Conglomerates Seizing Opportunities
Led by Sheikh Tahnoon bin Zayed, IHC is pursuing aggressive expansion as part of Abu Dhabi’s wider economic ambitions. Acquiring Lukoil’s assets fits into a broader strategy to push the company’s asset value towards Dh800 billion ($218 billion) by 2030. This prospective deal illustrates how Gulf investors are leveraging geopolitical shifts for strategic growth in energy and beyond.
