Chevron Corporation (CVX.US) teams up with private equity firm Quantum Energy Partners to acquire Lukoil International's assets.

According to reports, Chevron Corporation (CVX.US) and private equity firm Quantum Energy Partners, focused on the energy sector, will join forces to acquire the international assets of Russia's Lukoil PJSC, which is under U.S. sanctions. The report cited sources familiar with the matter as stating that Chevron Corporation and Quantum Energy Partners will split the asset portfolio, including oil and gas production, refining facilities, and gas stations, with Lukoil valuing these assets at $22 billion. Regarding the report, a spokesperson for Chevron Corporation stated that the company has a diversified investment portfolio and will continue to evaluate potential opportunities. Quantum Energy Partners declined to comment. It is known that Lukoil owns three refineries in Europe, as well as oil field shares in Kazakhstan, Uzbekistan, Iraq, Mexico, Ghana, Egypt, and Nigeria. The company also operates hundreds of retail gas stations worldwide, including in the U.S. market. In October of last year, the U.S. government announced sanctions on Russia's two largest oil producers - Rosneft PJSC and Lukoil - citing their financial support for Russia. Since the sanctions took effect, Lukoil's international assets have faced increasing operational hurdles - the oil production from the company's international assets accounts for around 0.5% of its global production. International commodity trading giant Gunvor had previously planned to acquire Lukoil's international assets but faced sharp criticism from the U.S. Treasury Department, labeling it as a "puppet" of the Kremlin. In response, Gunvor stated that the description from the U.S. Treasury Department was fundamentally misunderstood and grossly inaccurate. The company added, "We look forward to the opportunity to clarify this obvious misunderstanding. In the meantime, Gunvor has decided to withdraw its proposal to acquire Lukoil's international assets." It is worth noting that besides Chevron Corporation and Quantum Energy Partners, other companies globally are considering bidding for Lukoil's international assets, including Exxon Mobil Corporation (XOM.US), Abu Dhabi International Holdings, Saudi Arabia's Midad Energy, and Carlyle Group Inc.