Shell is reportedly in advanced talks to buy Gulf of Mexico oil producer LLOG Exploration Offshore for over US$3 billion, as it seeks to further strengthen its portfolio in the region.
While a deal is not yet guaranteed, according to Reuters, an agreement could be finalised by the end of the year. Louisiana-based LLOG began exploring a potential sale in October.
Production at Shell’s Gulf assets has surged in recent months. Last quarter, the company reported “strong operational performance driven by record production in Brazil and 20-year highs in the Gulf of America [Gulf of Mexico]”.
LLOG produces about 30,000 barrels of oil equivalent per day, and acquired around 236,000 acres in the deepwater Gulf area last year.
Shell also plans to sell a 20% stake in its Gato do Mato oilfield cluster in Brazil, Bloomberg reportedly separately today.
Gato do Mato is set to begin production in 2029, with a capacity of 120,000 barrels per day.
Shell acquired TotalEnergies’ stake in Gato do Mato earlier in 2025 through an asset swap, and reportedly aims to raise funds for the cluster’s development while remaining as operator.
Shell’s (LSE: SHEL) share price closed at UK£2,734.50, down from its previous close at £2,750.00. Its market capitalisation is £157.15 billion.
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