Blackstone is considering selling Gulf of Mexico (GoM) operator Beacon Offshore Energy in a deal that could be valued at more than $5bn, according to a report by Bloomberg.
The outlet said Blackstone is in talks with investment banks about a potential process that could begin as early as this quarter, citing people familiar with the matter.
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Beacon Offshore Energy is likely to garner significant interest from other oil and gas producers in the GoM, where Chevron, bp and Shell are major players.
However, no definitive decision has been reached, and Blackstone may also choose not to proceed with the sale, the sources indicated.
In recent years, consolidation within the US upstream sector has predominantly focused on shale operators due to decreasing crude prices and a reduction in premier drilling locations on land.
This shift contributed to a revitalisation of drilling activities in the Gulf.
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By GlobalDataBeacon Offshore Energy holds some of the most productive wells in the US, utilising advanced technology to access difficult-to-reach crude reserves.
Last December, Harbour Energy’s acquisition of Gulf explorer LLOG Exploration for $3.2bn (£2.38bn) underscored the ongoing interest in offshore drilling assets. The agreement comprised $2.7bn in cash and $500m in Harbour’s voting ordinary shares.
As part of its evolving business strategy, Blackstone has divested most of its oil and gas assets, including last year’s sale of Olympus Energy.
The alternative asset manager established Beacon Offshore Energy in 2016 with an objective to develop an offshore drilling entity in the deepwater Gulf.
Currently, Beacon Offshore Energy maintains interests in 68 deep-water leases spanning almost 400,000 gross acres.
The company recently began production of oil and natural gas at the Zephyrus field in Mississippi Canyon Block 759, approximately 130 miles (209km) south-east of New Orleans.
Production has started from the initial well in the field, which is positioned at water depths ranging from 3,100ft (945m) to 3,600ft.
In July 2025, Beacon Offshore Energy began production of oil and natural gas from the Shenandoah field off the coast of Louisiana.
