U.S. oil giant Chevron is exploring options to acquire global assets of the sanctioned Russian energy firm Lukoil, including stakes in an international pipeline, according to five sources familiar with the matter who spoke to Reuters on Monday. 

This move comes after the U.S. Treasury Department issued a license last week authorizing specific transactions involving sanctioned Russian oil companies Lukoil and Rosneft to ensure the continued operation of the Caspian Pipeline Consortium (CPC) and key oil and gas fields in Kazakhstan.

Chevron joins other suitors looking to acquire Lukoil’s foreign assets, including U.S. private equity firm Carlyle, in the running for the Lukoil portfolio, which is estimated to be worth at least $20 billion. According to the sources, Chevron is focusing on Lukoil assets where the companies' operations overlap, rather than pursuing the entire global portfolio. 

Following U.S. sanctions, Lukoil is seeking buyers for its international assets, which, according to 2024 filings, are valued at about $22 billion and account for 0.5% of global oil production, with its total global output (domestic and international) accounting for about 2% of the world's total.

The Office of Foreign Assets Control (OFAC) general license specifically authorizes transactions related to the operation of the CPC pipeline, the Tengiz field, and the Karachaganak field, as the pipeline remains a vital oil artery, connecting oil fields in western Kazakhstan and Russian offshore fields in the Caspian Sea to a marine terminal near Novorossiysk, Russia. 

It serves as the primary export route for Kazakh oil, handling over 80% of the country's pipeline crude exports, with an annual capacity of up to 83 million metric tons.

OFAC clarified that the license does not permit any transactions for the sale, disposition, or transfer of ownership interests in these projects. 

However, it does authorize the provision of oilfield and oil transportation services related to the three projects that had been prohibited under a previous U.S. administration order, provided they comply with the established price cap. 

This effectively reverses a January 10, 2025, prohibition, which had previously included temporary exemptions for the CPC, Tengiz, and Sakhalin-2 projects.

Lukoil holds stakes in Kazakhstan's Karachaganak (13.5%) and Tengiz (5%) fields, both of which also list Chevron, Exxon Mobil, Eni, and Shell as shareholders. 

The company was added to the U.S. sanctions list alongside Rosneft on Oct. 22 as part of the Trump administration's effort to pressure Moscow into peace talks regarding the conflict with Ukraine. 

These fields supply the CPC pipeline, which transports more than 1.6 million barrels per day (bpd) of crude—1.5% of global oil demand—to market via Russia.

While the company was given until November 21 to wind down general business, international projects in Kazakhstan, including the CPC and TengizChevroil, were explicitly exempted from the initial sanctions. 

The new license ensures that these crucial Kazakh energy interests, where other major international companies like Chevron and ExxonMobil are also shareholders, can continue to operate without disruption caused by sanctions on the Russian partners.