Exclusive: #Saudi firm Midad among frontrunners to buy Lukoil's global assets, sources say | Reuters

Exclusive: Saudi firm Midad among frontrunners to buy Lukoil's global assets, sources say | Reuters

Saudi Arabia's Midad Energy has emerged as one of the leading contenders to buy Russian oil major Lukoil's (LKOH.MM), opens new tab international assets, leveraging deep political ties with Moscow and Washington, three people familiar with the matter said.

The assets, valued at about $22 billion and spanning oilfields, refineries and thousands of fuel stations worldwide, have drawn bids from about a dozen investors, including U.S. oil majors Exxon Mobil(XOM.N), opens new tab and Chevron (CVX.N), opens new tab and private equity firm Carlyle, sources have said.

Lukoil is looking to sell its foreign operations after they were crippled by sweeping U.S. sanctions imposed in October aimed at pressuring Russia to end its war in Ukraine.

Midad Energy and Lukoil declined to comment. The U.S. Treasury did not immediately respond to requests for comment.

Midad Energy CEO Abdulelah Al-Aiban is the brother of powerful Saudi national security adviser Musaed Al-Aiban, who took part in U.S.-Russia peace talks in Saudi Arabia in February. Their father, Mohamed Al-Aiban, was the kingdom's first intelligence chief.

Midad Energy's bid comes against the backdrop of booming economic cooperation between the U.S. and Saudi Arabia under U.S. President Donald Trump, building on decades of energy and security ties. In 2025 alone, Riyadh and Washington signed deals spanning defence, energy and technology, with Saudi Arabia pledging investments of up to $1 trillion.

Midad Energy, part of Midad Holding, a subsidiary of Al Khobar-based Al Fozan Holding, has an ambitious expansion strategy, underscored by a $5.4 billion deal with Algeria in October.

Midad Energy plans an all-cash offer for Lukoil's assets, with funds to be held in escrow until sanctions on the Russian company are lifted, the sources said. The deal could involve U.S. companies, one of the sources added.

The U.S. Treasury has already blocked two other bidders - Gunvor and U.S. bank Xtellus Partners - from buying Lukoil assets, highlighting geopolitical hurdles.

Washington's sanctions, which were also imposed on fellow Russian oil major Rosneft (ROSN.MM), opens new tab, bar U.S. citizens from dealing with the firms, freeze their U.S.-based interests and cut off key sources of finance.

Lukoil has until January 17 to sell the assets, under the latest deadline set by the Treasury.

Gulf stocks fall as oil drops; #Saudi index hits 3-month low | Reuters

Gulf stocks fall as oil drops; Saudi index hits 3-month low | Reuters

Most Gulf equities slipped on Tuesday in tandem with a decline in global stock markets ahead of key U.S. data releases this week, while weaker oil prices also weighed on sentiment.

Crude prices, a key driver for Gulf financial markets, tumbled more than $1 to below $60 a barrel, the lowest since May.

The Qatari benchmark index (.QSI), opens new tab fell for a third straight session, losing 0.3% with all constituents in negative territory. Qatar Gas Transport (QGTS.QA), opens new tab dropped 1.8% and Dukhan Bank(DUBK.QA), opens new tab declined 1.3%.

Saudi Arabia's benchmark stock index (.TASI), opens new tab lost 1.3% to end at 10,453, its lowest level in three months, with all sectors in decline. Al Rajhi Bank(1120.SE), opens new tab, the world's largest Islamic lender, fell 2.1% and oil major Saudi Aramco (2222.SE), opens new tab shed 1%.

"A significant driver of today's decline was the drop in oil prices, which broke through key support levels," said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.

"This confirms the potential for further downside as the geopolitical risk premium fades, on speculation that the Russia-Ukraine conflict may be nearing a resolution."

The Abu Dhabi benchmark index (.FTFADGI), opens new tab was down for a third session, edging 0.1% lower with most constituents posting losses, led by consumer staples and energy. ADNOC Drilling (ADNOCDRILL.AD), opens new tab and ADNOC Distribution (ADNOCDIST.AD), opens new tab fell 1.3% each, while ADNOC Gas (ADNOCGAS.AD), opens new tab eased 0.9%.

Meanwhile, Abu Dhabi National Oil Company (ADNOC) said on Monday it has secured a controlling 95% stake in Covestro (1COVG.DE), opens new tab in its 14.7-billion-euro takeover, one of the largest acquisitions of an EU company by a Gulf state.

Dubai's benchmark stock index (.DFMGI), opens new tab snapped two sessions of losses to close 0.3% higher, supported by a 1.4% gain in Emaar Properties (EMAR.DU), opens new tab and a 1.3% rise in toll operator Salik Company(SALIK.DU), opens new tab.

Market attention is focused on U.S. employment reports for October and November due later on Tuesday, as well as an inflation reading on Thursday, that could help gauge the Federal Reserve's policy path next year.

U.S. monetary policy moves are closely watched in the Gulf, where most currencies are pegged to the dollar.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.7% after two straight sessions of gains, with most stocks in the red. Telecom Egypt (ETEL.CA), opens new tab slid 3.2% and E-Finance For Digital And Financial Investements (EFIH.CA), opens new tab dropped 4%.