ConocoPhillips reportedly in acquisition talks with Concho Resources

Oil major ConocoPhillips is reportedly in negotiation talks to acquire US shale gas exploration company Concho Resources.

The latest move comes as the oil major seeks to make a ‘bold bet on shale during an historic industry downturn’, Bloomberg reported, citing people familiar with the matter.

According to the news agency’s report, the companies are expected to announce a deal within a few weeks.

Representatives of both companies didn’t respond to Reuters request for comment.

According to the data compiled by Bloomberg, Concho’s purchase by the US oil major could become the largest takeover of an oil and gas company this year.

The deal, if completed, would likely surpass Chevron’s all-stock acquisition of Noble Energy.

According to data compiled by Bloomberg Intelligence, Concho and Conoco together produced about 1.3Mboepd in the second quarter of this year.

Last month, US-based independent natural gas and petroleum exploration company Devon Energy and peer WPX entered an all-stock merger of equals transaction.

In August, ConocoPhillips acquired land from oil and gas firm Kelt Exploration in Canada’s Montney shale oil play.

In September last year, Concho signed an agreement to sell its mature Permian Basin assets in New Mexico to an affiliate of Spur Energy Partners in a $925m deal.