Published by Global Banking and Finance Review
Posted on December 9, 2025
3 min readLast updated: January 20, 2026
Shell is in advanced talks to acquire LLOG Exploration for over $3 billion, enhancing its upstream portfolio in the Gulf of Mexico.
By David French and Stephanie Kelly
NEW YORK/LONDON, Dec 9 (Reuters) - Shell is in advanced talks to buy LLOG Exploration Offshore in a deal worth more than $3 billion, two sources familiar with the matter said, a move that would boost the oil major's upstream portfolio through one of the largest privately held oil and gas producers in the U.S. Gulf.
The parties are locked in talks and an agreement is seen as close, the sources said, with one adding that a deal could be struck by the end of the year.
The sources cautioned there was no guarantee a deal will be agreed between Shell and the Covington, Louisiana-based producer, and spoke on condition of anonymity to discuss private deliberations.
Shell declined to comment. LLOG did not respond to a comment request.
LLOG produces around 30,000 barrels of oil equivalent per day but production is expected to grow considerably by the end of the decade, according to Ross Lubetkin, CEO of energy consultancy Welligence.
Shell is already one of the largest energy producers in the U.S. Gulf, a region that has continued to attract attention as energy firms value its long-term production potential.
Reuters reported in October that LLOG was exploring a potential sale, citing unnamed sources.
SHELL'S UPSTREAM PORTFOLIO IN FOCUS
Analysts have said Shell might turn to deals to deepen its upstream portfolio. CEO Wael Sawan said in a call with analysts to discuss third quarter earnings that he hoped to see attractive M&A opportunities in 2026.
"We believe North American gas or deepwater oil assets would be good additions to Shell's portfolio," HSBC energy analyst Kim Fustier said in a note in October after Shell's results.
LLOG announced in September first production from its Salamanca floating production unit, which is supporting drilling in the Leon-Castile fields. The Salamanca project's unit has capacity for 60,000 barrels of oil per day and 40 million cubic feet of natural gas per day, and Repsol is one of LLOG's partners in the development.
LLOG also announced in July 2024 it had acquired 41 blocks of acreage, about 236,000 acres, in the deepwater Gulf.
The company has operated the Who Dat floating production system since 2011, according to its website, with gross production from the Who Dat field currently at 21,000 bpd of oil and 51 million cfpd of natural gas.
LLOG's founder Gerald Boelte died last year, and his family remains the controlling owner. As of October, LLOG has 125 employees, its website said.
(Reporting by David French in New York and Stephanie Kelly in London. Editing by Anousha Sakoui and Nia Williams)
LLOG Exploration is a privately held oil and gas producer based in Covington, Louisiana, known for its operations in the U.S. Gulf region.
An upstream portfolio refers to a company's assets and operations related to the exploration and production of oil and gas.
Oil equivalent is a unit of measurement that expresses the energy content of various energy sources, such as oil and gas, in terms of a common unit.
The U.S. Gulf is significant in the energy sector due to its extensive oil and gas reserves, making it a key area for exploration and production activities.
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