Exclusive: TotalEnergies Acquires Full Ownership of Zeeland Refinery from Lukoil

• Lukoil originally purchased its 45% stake in the Zeeland refinery from Total for approximately $725 million in 2009 during a Russian state visit, in a deal seen as expanding Moscow's influence in northwest Europe
• U.S. Treasury sanctions on Lukoil in October 2024 forced the company to launch a sale of its assets, though the Zeeland refinery was not formally subject to sanctions as Lukoil held only a minority stake
• TotalEnergies CEO previously attributed challenges in profitable refining to sanctions on Russian oil companies Lukoil and Rosneft, with the company expecting weak profit margins for European refining in Q4 2025

TotalEnergies Acquires Full Ownership of Zeeland Refinery from Lukoil

French oil major TotalEnergies has taken 100% ownership of the Zeeland refinery in the Netherlands by re-acquiring the remaining 45% stake from Russia's Lukoil, according to two sources familiar with the matter. Financial terms of the transaction were not disclosed, and both companies declined to comment or did not respond.

Background and Context:

Lukoil originally acquired its 45% stake in Zeeland from TotalEnergies for approximately $725 million in 2009 during a Russian state visit, a deal that significantly expanded Moscow's influence in northwest Europe. The stake was initially valued at around this amount when Lukoil launched its sale following U.S. Treasury sanctions imposed in October aimed at pressuring Russia to end its war with Ukraine.

Regulatory Status:

The Zeeland refinery was not formally subject to U.S. sanctions since Lukoil held only a minority stake. The Dutch ministry for climate and green growth confirmed the transaction was an internal corporate matter requiring no government approval. The U.S. Treasury did not immediately comment.

Market Implications:

TotalEnergies is set to report Q4 and full-year 2025 results this Wednesday, with expectations of continued pressure on European refining profit margins in Q4. CEO Patrick Pouyanne previously attributed challenges in profitable refining to sanctions on Russian companies Lukoil and Rosneft in September.

The acquisition consolidates TotalEnergies' control over a key European refining asset amid ongoing geopolitical tensions and sanctions affecting Russian energy companies' Western operations.