Shell plc is in advanced talks to acquire LLOG Exploration Offshore, a privately held U.S. Gulf Coast oil and gas producer, in a transaction valued at more than $3 billion. The announcement was made on December 9 2025 and would add LLOG’s proven onshore and offshore assets to Shell’s portfolio, strengthening its position in the Gulf Coast and expanding its production base.
LLOG Exploration operates primarily in the Gulf of Mexico, with assets including the Salamanca floating production unit that supports drilling in the Leon‑Castille fields. The company has a history of acquiring leases and developing deep‑water blocks, making it one of the largest privately held producers in the region. The deal would give Shell a foothold in a high‑return basin that has attracted significant investment despite a slowdown in upstream deal activity.
Shell’s strategy has focused on high‑return upstream opportunities and selective acquisitions. In Q3 2025, Shell reported adjusted earnings of $5.4 billion and cash flow from operations of $12.2 billion, a 10% increase in net income from the same period last year. The company’s earnings call highlighted strong operational performance and capital discipline, underscoring its confidence in executing growth initiatives such as the LLOG acquisition.
The transaction aligns with Shell’s broader portfolio management, which includes recent increases in its stake in Brazilian pre‑salt projects and ongoing divestments of lower‑margin assets. By adding LLOG’s assets, Shell would expand its production base in a key offshore region, potentially boosting its upstream output and enhancing its ability to meet long‑term demand for oil and gas.
Management has emphasized that the acquisition would reinforce Shell’s focus on high‑margin upstream assets and support its goal of maintaining robust cash flow. While the deal is still in advanced talks, the valuation of over $3 billion reflects the premium Shell is willing to pay for proven Gulf Coast assets that can be integrated into its existing operations.
The announcement comes amid a broader trend of consolidation in the U.S. Gulf Coast, as companies seek to secure production capacity in a region with long‑term potential. The deal, if completed, would position Shell to capture additional production upside while maintaining its commitment to operational excellence and capital discipline.
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