This was reported by Bloomberg, citing sources familiar with the discussions.
According to the publication, Shell has intensified internal consultations on the feasibility of the deal, but the final decision will depend on the further dynamics of BP's quotes and changes in the oil market. Bloomberg's interlocutors note that Shell is in no hurry with the initiative and may wait for a further decline in oil prices and BP shares before making a decision.
Over the past year, BP's share price has fallen by almost 30%, partly due to investor dissatisfaction with the company's strategy to overcome the crisis, as well as a general decline in energy prices.
The talks are at an early stage, and Shell is keeping alternative options open, including focusing on buying back its own shares or acquiring smaller assets. Other major energy players could also be interested in BP, the sources said.
If such a merger were to go ahead, the Shell-BP merger would be one of the largest deals in the history of the oil and gas industry. While the companies previously had similar scale and global presence, over time their business models and market positions have diverged.
Shell's market capitalization on the London Stock Exchange is currently valued at £149 billion, while BP's is around £56 billion.
