No African State Oil Firms Step Forward for Lukoil’s $22bn Divestment Package

Russian oil major Lukoil, facing mounting Western sanctions, is progressing with the sale of its international upstream portfolio—estimated at around $22 billion—yet none of the African national oil companies (NOCs) that hold contractual pre-emption rights have so far signaled intent to bid.

The assets on offer include stakes in producing and development projects across Nigeria, Ghana, Cameroon, and Egypt. Under existing joint operating agreements and host-country legislation—most notably Nigeria’s Petroleum Industry Act (2021)—local NOCs and state entities typically enjoy the right of first refusal when a foreign partner seeks to transfer its interest.

Despite a broader continent-wide push to increase national participation in hydrocarbon projects through tighter local-content rules and legislative reforms, sources indicate that no African NOC has formally moved to exercise these rights in the current Lukoil process. Industry observers point to a combination of strategic misalignment, limited immediate financial capacity, and technical considerations as possible reasons for the inaction.

International players, including Abu Dhabi National Oil Company (ADNOC), have already expressed interest in select assets. Any successful bidder will still require formal approval from the respective host governments before completing entry into the licenses.

As the divestment advances, the absence of African state participation underscores the continuing challenges national oil companies face in rapidly mobilizing capital and expertise to seize opportunities created by the forced exit of sanctioned Russian operators.