Chevron & Exxon Eye Lukoil's Global Assets in High-Stakes Pivot

Chevron Corporation CVX and Exxon Mobil Corporation XOM are reportedly exploring the selective acquisition of Lukoil assets that align with their existing portfolios and long-term strategic goals, while sweeping sanctions are forcing Lukoil to divest international assets worth more than $20 billion. The U.S. Treasury’s recent clearance allowing potential buyers to engage with Lukoil has triggered a scramble among global energy giants. Ahead of the Nov. 21 sanctions deadline, the United States had blocked Lukoil's attempt to sell assets to Swiss-based trader Gunvor.

Strategic Overlaps Drive Chevron’s Interest

Chevron, currently carrying a Zacks Rank #4 (Sell), is evaluating assets where operational and geographic overlap present a natural fit. The company already partners with Lukoil in Kazakhstan’s Karachaganak and Tengiz fields — two major contributors to global crude supply via the CPC pipeline. Acquiring additional stakes here could deepen Chevron’s presence in Central Asia while strengthening its position in key upstream projects. The company’s interest extends to assets in regions like Nigeria, where both firms share involvement in offshore developments.

Exxon Eyes West Qurna 2 as Prize Asset

Exxon has emerged as a serious contender, particularly drawn to Iraq’s West Qurna 2 — one of the world’s most significant undeveloped oil fields. With experience operating the adjacent West Qurna 1 before exiting last year, Exxon sees an opportunity to reestablish a major foothold in Iraq’s energy landscape. A successful acquisition would mark one of the company’s most impactful upstream moves in the region in over a decade.

A Global Portfolio in Play

Beyond the Middle East and Central Asia, Lukoil’s international footprint spans Europe, Africa and the Americas. Its assets include refineries, retail stations and stakes in oilfields across Mexico, Ghana, Egypt and Uzbekistan. The breadth of the portfolio has attracted not only strategic buyers like Chevron and Exxon but also investment firms such as Carlyle, which are assessing selective opportunities amid the fire sale.

Geopolitics Raise the Stakes

The unfolding contest isn’t just commercial — it’s geopolitical. U.S. sanctions aim to pressure Moscow amid the Ukraine conflict, and the forced divestiture of Lukoil’s assets shifts strategic energy resources into new hands. Countries like Iraq are even seeking temporary waivers to manage the transition.

Key Picks

Investors interested in the energy sector may consider some top-ranked stocks like Canadian Natural Resources Limited CNQ and Oceaneering International, Inc. OII, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Calgary-based Canadian Natural is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The Zacks Consensus Estimate for CNQ’s 2025 revenues indicates 5.7% year-over-year growth.

Oceaneering International is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. The Zacks Consensus Estimate for OII’s 2025 earnings indicates 76.3% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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