The global energy landscape is abuzz with rumors that Anglo-Dutch oil giant Shell is exploring the possibility of acquiring its rival, UK-based BP, in what could be one of the most significant mergers in recent industry history. According to Bloomberg, Shell’s management has engaged advisers to assess the feasibility of a takeover that could create an energy, chartering, and shipping powerhouse valued at over $266 billion.
The speculation gained momentum after BP’s shares experienced a sharp decline of more than 30% since the beginning of 2025, prompting questions about its strategic position and valuation. Unable to attract investor confidence despite a turnaround plan led by CEO Murray Auchincloss, BP has faced broader challenges due to falling oil prices and investor sentiment turning cautious.
While BP has not issued an official statement on the merger rumors, Shell has responded. A spokesperson for Shell told The Guardian, “As we have said many times before, we are sharply focused on capturing the value in Shell through continuing to focus on performance, discipline, and simplification.” Shell’s CEO Wael Sawan also addressed market speculation, stating to the Financial Times, “We will always look at these things, but you are also looking to see the alternative. Right now, buying back Shell shares continues to be the right alternative for us.”
Financially, BP’s struggles are evident. The company’s earnings shrank nearly by half in the first quarter of 2025, closing at $1.4 billion, compared to Shell’s reported adjusted profit of $5.6 billion—down 28% year-over-year. The decline in BP’s stock price has также reportedly made it a target for activist hedge funds like Elliott Management, which aim to capitalize on its undervaluation.
Regarding maritime assets, Shell’s extensive shipping portfolio includes 22 LNG carriers, floating storage and offloading units, tankers, and survey ships. Meanwhile, BP operates around 20 vessels, including floating storage units, LNG carriers, and offshore tonnage, reflecting the scale of assets involved in a potential merger.
As discussions remain in early stages, industry watchers and investors alike will watch closely to see if this emerging story culminates in a game-changing deal in the energy sector.
