Shell Eyes LLOG Deal to Strengthen Its Gulf of America Portfolio

Group 1 - Shell plc is in advanced negotiations to acquire LLOG Exploration Offshore for over $3 billion, aiming to enhance its upstream position in the U.S. Gulf, a key growth region [1][8] - The acquisition aligns with Shell's strategy of disciplined divestments and focused investments, as it exits lower-value assets while investing in high-return projects [2] - LLOG currently produces approximately 30,000 barrels of oil equivalent per day, with significant growth potential expected by 2030, bolstered by its assets like the Salamanca development and Who Dat field [3][8] Group 2 - The deal is crucial for Shell as it faces a projected decline in output to nearly 2.4 million barrels of oil equivalent per day by 2035, necessitating strategic M&A to maintain production levels [4] - Shell's CEO has indicated a growing interest in selective M&A opportunities, particularly in North American gas and deepwater oil, making LLOG's assets a complementary fit [5] - An agreement is anticipated to be finalized by year-end, although discussions remain private and uncertain [6]