Lukoil’s gas extraction plans in Romania collapse amid contract cancellation

The companies were supposed to work together at the Trident field.

Vantage Drilling announced the cancellation of a contract for operating the drilling vessel Platinum Explorer but did not name the client.

The company declined to comment on reports that the contract was with Lukoil but said it “terminated the contract because the relevant sanctions made its performance illegal.”

Lukoil owns an 85% stake in the Trident and Est Rapsodia fields in partnership with Romanian state company Romgaz. They had hoped to begin drilling in 2026, but those plans are now in question.

Earlier, it was reported that Washington gave Berlin six months to resolve ownership issues concerning the German assets of Russia’s state oil company Rosneft. The deadline would allow temporary exemption from new U.S. sanctions. President Donald Trump’s administration informed German officials that it was considering granting a limited, nonrenewable general license for Rosneft Deutschland.

Against this backdrop, U.K. Prime Minister Keir Starmer said Ukraine’s prospects were “gradually improving” after Trump imposed sanctions on Russia’s oil sector.

In response, Lukoil announced plans to sell its foreign assets following the new U.S. sanctions, saying it would do so under a license from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) permitting the wind-down of operations.

The company added that it plans to apply for an extension of the license if necessary to ensure the continued operation of its international holdings.

Ultimately, Lukoil found a buyer for its foreign assets, agreeing to sell them to the energy trading company Gunvor Group. Lukoil accepted Gunvor’s offer to purchase Lukoil International GmbH and committed not to negotiate with other potential buyers. The deal still requires approval from OFAC and other regulatory authorities.

Notably, Gunvor has long-standing ties to Russia. One of its co-founders, Gennady Timchenko, was sanctioned by the U.S. in 2014 following the annexation of Crimea. At the time, U.S. authorities alleged that Vladimir Putin held investments in Gunvor, which the company denied. Today, a majority stake belongs to another co-founder, Torbjörn Törnqvist, who also serves as CEO.

Russia analyst Ihor Tyshkevych said that Lukoil’s retreat from international markets, if its assets are transferred to non-Russian companies, could deal a heavy blow to the Kremlin. “Russia will try to retain control over Lukoil’s assets. They may no longer belong to Vagit Alekperov personally but will remain under Kremlin management — ideally,” he said.

Meanwhile, the United States temporarily exempted two of Rosneft’s German subsidiaries from sanctions.

President Donald Trump intends to push through tougher new oil sanctions against Russia to force Vladimir Putin to start negotiations on ending the war in Ukraine, U.S. Ambassador to NATO Matthew Whitaker said. “We imposed these sanctions. We plan to ensure their enforcement. Perhaps this will help President Putin come to the negotiating table, end this war, and at least agree to a ceasefire so we can work toward a final resolution,” Whitaker said.

At the same time, the U.S. sanctions on Rosneft have reignited debate in Germany about nationalizing the company’s local business, including a refinery on which Berlin depends for much of its fuel production.

On Nov. 4, Iraq’s state oil company Somo canceled the shipment of three oil cargoes produced by Lukoil as part of its stake in the West Qurna-2 field, citing concerns over U.S. and U.K. sanctions.

On Nov. 12, 2025, it was reported that Romania might take control of Lukoil’s assets due to the U.S. sanctions.