A Saudi Arabian investment firm, Midad Holding, has emerged as one of the leading contenders to acquire the global assets of Russian oil major Lukoil, according to people familiar with the matter, as the company accelerates its withdrawal from overseas operations.

The potential transaction would involve a broad portfolio of downstream and upstream assets across Europe, Africa and Asia, and is being closely watched by energy markets and governments amid continuing geopolitical realignments.

Sources with knowledge of the discussions say Midad is among a small group of bidders that have advanced to the later stages of talks, as Lukoil seeks buyers capable of navigating regulatory scrutiny while offering sufficient scale and financial strength.

The assets under consideration include refining, storage and retail fuel operations outside Russia, which Lukoil has been under pressure to divest as sanctions and political risk complicate its international footprint.

Midad, which has investments spanning energy, infrastructure and industry, is understood to be positioning itself as a long-term strategic owner rather than a short-term financial buyer.

Any deal would likely require approvals from multiple national regulators, particularly in Europe, where authorities have tightened oversight of transactions involving Russian-linked assets.

Market participants say this has narrowed the field to bidders perceived as politically neutral and financially robust.

Lukoil has not publicly commented on the reported negotiations, and no final decision has been announced.

Analysts note that a successful sale would mark one of the most significant transfers of Russian energy assets to Middle Eastern ownership since the start of the Ukraine conflict, reflecting a broader shift in global energy investment flows away from traditional Western markets.

Talks are said to be ongoing, with the structure, valuation and timing of any potential agreement still under discussion.