G.O.I. Energy is run by Michael Bobrov who is CEO of Israeli firm Green Oil that holds a major stake in Israel's biggest refiner Bazan Group.
The deal marks a greater expansion into the refining by Geneva-based Trafigura and Lukoil's first major deal to sell its overseas assets after Western sanctions were imposed on Russia for its invasion of Ukraine.
The ISAB plant in Sicily refines a fifth of Italy's crude and directly employs about 1,000 people in an economically depressed area in the country's southernmost region.
In a statement, the companies said the deal is expected to close in March this year. The companies did not provide a value for the deal. Earlier price discussions with other bidders were just under 1.5 billion euro ($1.61 billion).
The agreement to sell the plant needs the green light from Italy's government, which under the so-called golden power regulations reserves the right to block or impose conditions on deals involving companies deemed of strategic importance.
($1 = 0.9306 euros)
(Reporting by Julia Payne in London, Giuseppe Fonte in Rome and Vladimir Soldatkin in Moscow; editing by David Evans)
