ExxonMobil is reportedly considering an $11 billion takeover of Kurdistan-focused explorer Gulf Keystone Petroleum.
Reuters, citing the Independent on Sunday newspaper, said that Exxon is considering making an estimated 800 pence per share bid for the British company, which has made huge oil finds Iraqi Kurdistan.
Neither company could be reached for comment by Reuters on Sunday.
Exxon has "sounded out" Gulf Keystone about the possible deal, said the report without citing its sources, adding that it is thought that the company would not accept an offer at the 800 pence per share level.
Shares in Gulf Keystone closed at 165.5 pence on Friday, valuing the firm at 1.4 billion pounds.