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(Bloomberg) — Gunvor Group Chief Executive Officer Torbjörn Törnqvist said an agreement to acquire Russian oil producer Lukoil PJSC’s international portfolio represents a “clean break” for the assets.
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In a shock announcement, Lukoil said last Thursday it had agreed to sell its international assets, including upstream production, refineries, gas stations and a trading book, to Gunvor, without disclosing terms. The trading house, which has longstanding ties to Russia’s energy industry, has now begun talks with regulators over the potential purchase.
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Törnqvist said he believes any concerns the authorities might have about continued Russian influence over the portfolio would be satisfied, and ruled out a scenario where any of the assets get sold back should sanctions on the Russian company be removed.
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“Obviously we are assuring them that this is not the case,” he said in an interview with Bloomberg Television on Tuesday. “And it’s a clean break, the moment the deal is done – that’s it.”
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“We’re pretty confident that this deal ticks off all the critical boxes,” Törnqvist said of discussions with regulators and authorities.
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The US blacklisted Lukoil and fellow Russian oil giant Rosneft PJSC last month as part of a fresh bid to end the war in Ukraine by depriving Moscow of revenues. Gunvor’s subsequent deal is subject to clearance from the US Treasury’s Office of Foreign Assets Control, among other authorities.
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Törnqvist said the assets would help his firm as oil markets become more crowded and competitive, but indicated some could be spun off to other parties.
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“There are assets perhaps we would feel would be better preserved in other hands,” he said, without elaborating.
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—With assistance from Dina Khrennikova.
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