Shell to acquire stakes in BP exploration assets in Gulf of Mexico

Shell has acquired an interest in the Conifer prospect in the Gulf of America (GoA), with BP retaining operatorship. The initial exploration well is expected to begin in 2027. Shell claims its GoA production has among the lowest greenhouse gas intensity in the world for producing oil, according to the company.

Bp sold 50% of its Tupinambá block in Brazil and 30% of Conifer leases in the Gulf of America to Shell. Bp retains operational control and majority stakes. Shell's acquisition requires regulatory approval. The deal aligns with bp's strategy to streamline its portfolio. Shell's stake in these assets could impact its exploration and production outlook.

Shell Oil Products US (Shell) agreed to acquire the remaining 67% stake in Tri Star Energy, a convenience store operator with 320 sites. The deal aligns with Shell's strategy to expand in key markets, like the US, and is expected to close by year-end, pending regulatory approval. Shell aims to generate strong returns and strengthen its US presence.

Shell (SHEL) plans to issue 228,003,843 new shares as part of its acquisition of ARC Resources. The new shares will rank equally with existing shares and are expected to begin trading on the London Stock Exchange on 3 September 2026. The issuance will dilute existing shareholders' ownership.

Shell's U.S. chemicals business, with assets valued up to $8B, has drawn interest from Exxon, LyondellBasell, Apollo, and Kuwait Petroleum. Shell aims to sell non-core assets to fund growth, including a $16.4B ARC Resources deal. Analysts expect Q3 earnings of $2.72 per share, up 46.24% YoY, with a consensus 'Moderate Buy' rating and $99.23 price target.

TotalEnergies (TTE) agreed to buy Shell's (SHEL) European onshore renewables business, including 500 MW of operational/under-construction assets and a 3.5 GW pipeline. The deal, pending regulatory approval, supports TTE's European Integrated Power strategy. Piper Sandler raised SHEL's price target to $89. Both companies reported strong Q2 2026 results, with SHEL generating higher cash flow but TTE having a leaner balance sheet.